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Peaceful

Penetration

AH McLaren
PEACEFUL PENETRATION
PEACEFUL
PENETRATION
BY
A. D. MCLAREN
GERMANISM FROM WITHIN," ETC.

" Ce mouvement de
conquete insidieuse et latente,
prparant de loin une conquete reelle et officielle."
LEROY-BEAULIEU (1891)

PUBLISHED BY
E-P-DUTTON-8-COMPANY
68l-f IfTH -AVENUE
NEW -YORK..
ESTABL1SHED-1852,
7
PREFACE
WHAT the world will be like after the war, the new
adjustments which new conditions will necessitate,
what pursuits and interests will come to an end and
what others will take their place for two years
speculation on these subjects has been rife in every

European country.
But the following chapters would have been written
if there had been no war. Before I witnessed
Germans in Berlin, during those great summer days
of 1914, giving free play to their dreams of indemni-

ties to be exacted from stricken foes, and of the

world-power which the mighty upheaval would


inevitably bring them, I saw very distinctly certain

dangers threatening our economic and national life.

These dangers did not all lie on the surface of things.


" "
Peaceful penetration is one page in the history
of Deutschtum, it is one of the forces indicating

Germany's attitude to other nations, it is one part


in that mission which is compounded of a con-
sciousness of superior organisation and military
6 PEACEFUL PENETRATION
supremacy, to which commercial supremacy is
tributary. We can only meet the menace by
collective effort and by feeling a higher sense of

responsibility to the nation than to party.

A. D. M.

LONDON,
1st September, 1916.
CONTENTS
CHAPTER FACE
I. WHAT is PEACEFUL PENETRATION? . . 9

II. SLEUTH-HOUNDS . . 30-53

(i)
WHAT ABE SLEUTH-HOUNDS? . . 30

(ii)
THE KING OF SLEUTH-HOUNDS . .40
III. PEACEFUL PENETRATION AT WORK . 54-117
(i)
IN THE BRITISH DOMINIONS . . 54

(ii)
IN OTHER COUNTRIES . . . 74

IV. GERMAN COLONISATION . . . 118-155

(i)
BRIEF SURVEY OF GERMAN COLONIAL
EFFORT . . * , . 118

(ii)
AN ESTIMATE OF THE GERMAN AS COLONIST 137

(iii)
THE GERMAN'S RESPONSE TO THE CALL
OF DEUTSCHTUM . . ; 149

V. AUSTRALIA IN WORLD-POLITICS . . 156-188


(i)
INTRODUCTORY . . . 156

(ii)
GERMANY'S "PRESSING TO THE EAST."
WHAT IT MEANS FOR AUSTRALIA 164

(iii)
HOMOGENEITY . . . ,170
(iv) THE NEW IMPERIALISM . . ,..* 181

VI. NATURALISATION . . . . . 189

VII. THE OUTLOOK 202


PEACEFUL PENETRATION
CHAPTER I

WHAT IS PEACEFUL PENETRATION ?


"
THOUSANDS of your fellow-countrymen are living
in all parts of the world, German wares, German
knowledge, German business energy, traverse the
ocean. The earnest duty, then, devolves upon you
to form a strong link with this Greater Empire,
binding it to the Empire at home." The Kaiser,
18th January, 1896, on the occasion of the twenty-
fifthanniversary of the founding of the German
Empire.
Of all the currents of German activity which the
past eighteen months have, in the most literal sense,
revealed to British citizens throughout the world,
"
that form of this activity which we call peaceful
"
penetration has presented manifestations so strange
and unexpected that even " the man in the street "
has been startled into inquiry and anxious ques-
tioning. German trade, banks, mercantile em-
ployees, commercial travellers, German schools,
churches and clubs, abroad surely these were all
in the way of legitimate business, or represented
9
10 PEACEFUL PENETRATION
" " "
movements of a cultural nature. Business,"
"
like a word that means different things
culture," is

to different people. The German trader and, of late,


the German colonist, have been the advance agents
of the Wilhelmstrasse. Had German enterprise
confined its effort we might
to commercial profits,
have envied we could hardly have ever
its success,

sought to extinguish it by other than commercial


means. But when it is seen that German mercantile
employees, bankers, shipowners, often naturalised
have been working on an organised
British subjects,

plan with the German Government and its resources


behind them, not for material gain only but for the
purpose of strengthening the Prussian machine, we
are driven in self-defence to regard these traders
and colonists as agents of political Deutschtum.
I shall show, in the present volume, that these men
were instruments of German diplomacy, missionaries
of Germanism as an imperial power, and I shall
lay bare some of the methods and channels through
which they worked to this end. The subtle in-
fluence that has been developing along systematic
lines, that has honeycombed every country in the
world, did not begin yesterday. It has been a
movement in the nature of a slow conspiracy, its
agencies constituted an elaborate but invisible
network commercial treachery combined with
of

political espionage. Germany has been carrying


on war against the British Empire for a much longer
period than two years.
WHAT IS PEACEFUL PENETRATION ? 11

" "
Germany's peaceful penetration may be de-
fined as the employment, in normal times, of
"
commercial, cultural," and kindred means,
as

weapons to prepare the way for political influence.


In other words, under protestations of goodwill
Germans have availed themselves of the hospitality
of a friendly nation in order to undermine its

sovereignty. It is a campaign carried on by a


variety of arms traders, big financial or-
spies,
ganisations, religious missionaries, schools having
for its ultimate goal the weakening, politically, of
the community in which its agents work. It is
"
much more than trade penetration, it is " cultural
penetration for aggressive national ends. It has
used the right of free and unrestricted domicile
to shatter the political stability of a prospective
rival Power. It has been warfare on scientific lines;

its activities have been co-ordinated, it has been


part of State policy. This national organisation
of its agencies has been the main feature of Ger-
"
many's peaceful penetration." Their pursuits
have shown premeditation, they have been, and
were intended to be, a source of hidden peril to the
State which harboured them. But just as world-
politics and militarism are words which for some

years have been on the lips of everybody who takes


an intelligent interest in political questions, and yet
can only be " defined " by events and concrete
happenings, so for the man who knows Germany,
and has travelled with eyes wide-open through the
12 PEACEFUL PENETRATION
"
length and breadth of the British Empire, peaceful
"
penetration is illustrated by facts which make

it less of an abstraction then either of those other

terms.
More than ninety-nine per cent of the people
of England and the Dominions were in total dark-
ness concerning Germany's political code as it was
being applied in all quarters of the world. At the
moment of writing I have before me about a dozen
standard works, published within the past five or
six years, on Canada, South Africa, or some part of
"
Britain beyond the seas," and in only two of them
is there any reference in the index to Germans
settled in the dominion in question, and in one of
these the subject occupies three lines of text.
Long before hostilities broke out, I could see that
a movement on an extensive scale was being en-
gineered from Germany, and much that came under
my notice threw a flood of light on activities which
I had seen at work fifteen years previously in
Australia. The inner meaning of economic and
political undermining, in what way disaffection was
fomented in certain countries, why Germans sought
to gain influence in political parties, established
their own schools, and wherever possible strove to

identify local nationalism with anti-British senti-


ment all this dawned upon me with a new light.
I read letters and articles in German newspapers
purporting to be written by Indian students, I
knew that in German South West Africa the
WHAT IS PEACEFUL PENETRATION ? 13

Germans, prompted from the homeland, were


intriguing to prevent the remnant of the irre-
concilables in Cape Colony from ever becoming
reconciled, I saw and read much of the activities
of such societies as
"
Deutschtum im Ausland "
(Germanism Abroad). I knew that every capital in
" "
Europe had its German colony its army of

clerks, waiters and hotel-keepers, that many of


these were direct agents of Deutschtum, and nearly
all of them engaged in some way in the work of

permeation. As far as opportunity was afforded


me I drew attention to these sinister activities.
In an article " Canada's Offer its Effect on
:

Germany," in the Sydney Daily Telegraph in

January, 1913, I mentioned with what quivering


anxiety Germany was following any tendency to
closer organisation, political and economic, between
Great Britain and the Dominions in the same
;

"
journal, 27th December, 1913, writing on European
Emigration and the British Empire," I referred to
the stirring appeal of the Kaiser quoted at the head
of this chapter, and to the clamour of Die Post and
Deutsche Warte for more German schools in Canada,
"
South Africa, and Australia. I added
Whether :

other nationalities have put forward similar claims


'
or not I cannot say but this new form of pacific
;

'

penetration hardly seems calculated to introduce

stability into the domestic affairs of the Dominions."


In August 1913 I was in London, on a few days'
visit from Germany, and a representative of the
14 PEACEFUL PENETRATION
British Australasian specially interviewed me.
Asked then in what way the imperialistic spirit in
Germany was manifesting itself, and other similar
questions. I answered :

"
An influential journal in Berlin said last month
that if the Germans in Winnipeg and some other
parts of Canada would unite and work together.
they should be strong enough to exercise some
influence on the Dominion Government. Another

journal said recently that the Germans in South


Africa should agitate for their own schools, and that
Germans abroad, no matter where, must remain
in close touch with the Fatherland. It seems to me
that every foreign nationality settled within
if

our Empire were to advocate a similar policy that


is, to create an imperium in imperio the result
could only be a source of national, economic, and
social weakness. It would be a constantly disturb-

ing and disintegrating factor an ever recurrent


element of discord fatal to assimilation and unity
l
of purpose."
In short, though the war has revealed a good
many things, to me it has confirmed more.
Even to the few who had
followed Deutschtum
and its workings the ramifications of " peaceful
"
penetration were not known in all their broad
"
reach. We
ought not to commit the criminal
error of building up our industries upon a foundation
controlled by the enemy." In March 1916 such a
1
British Australasian, 21st August, 1913.
WHAT IS PEACEFUL PENETRATION ? 15

warning by the Premier of Australia can burn its

impress indelibly on the consciousness of the people


both in England and in the Dominions. But before
4th August, 1914, any note to like effect was always
"
struck in a half-hearted way. What motive can
Germans have in undennining, politically, a country
in which they are prosperously settled ? The more
they weaken us the more they weaken themselves."
The argument was similar, in principle, to that put
forward for many years by a section of English
politicians who were fond of pointing out that
Germany was England's "best customer." For
them doubtless such an expression as " apostle of
"
Deutschtum was a meaningless term.
How has Germany been able to control the
essentials of British industry and, generally, to use
" "
peaceful penetration in order to riddle our
trade, to make her economic expansion a branch of
political expansion Speaking in the Reichstag
?

early in April 1916, Bethmann Hollweg said :


-
"
If those three Powers had not united against us,
the peace of Europe would have been gradually
established by the sheer force of quiet development.
To was the aim of German policy before
attain this
the war." Thisis an interesting admission. If it is
read in conjunction with more explicit utterances by
Bismarck and Caprivi it will throw some light upon
the inner nature of German penetration. " The
"
flag follows trade was what Bismarck used to
insist upon whenever questions of colonial
policy
16 PEACEFUL PENETRATION
"
were before the Reichstag. First the trader, then
the soldier." His attitude on colonial questions
varied from time to time, but he consistently adhered
to this dictum and often set in opposition to
it what
"
he called artificial colonisation." Capri vi con-
tinued the policy of combining trade and the flag,
and brought private firms and industrial organisa-
tions more and more into touch with the State.
Ever since the foundation of the Empire, German
trade has been an element in an extended Prussian
State, and that is why tariffs, shipping subsidies,
differential railway rates, bounties, consuls, and
" "
the export of men have been important cog-
wheels in the national machine. They constitute
that paternalism which has been the pivot on which
all German expansion has turned, and in every

field, political, economic, and social, this paternalism


is quasi-military in character. Germans throughout
the world, taught and encouraged to simulate
friendship and abuse confidence, had all been en-
"
listed as agents in the work of pacific penetration."
By nature and training they were efficient agents.
"
The wealth of Germany is the resultant of two
forces, it is the point where two converging lines
meet and intersect, one of them the national will as
determined by history, and the other the economic
conditions of the world as they were at the moment
when the new Empire appeared on the scene." l
1
Henri Haxiser, Lea Mithodes allemandes d' expansion 4co-
nomique, (1915), p. 11.
WHAT IS PEACEFUL PENETRATION ? 17

The German spirit of organisation, German


studiousness and application to work, German
surrender of individuality to the State, have all
won an ample meed of praise in the homeland, from
the Kaiser down to writers like Rohrbach and
Naumann. They are all potent factors in Germany's
"
peaceful penetration." Speaking of the de-
nunciations of German militarism, which the past
two years have called forth universally outside the
Central Powers, von Biilow says that the discipline
of the German army has reigned throughout
"
Germany's economic growth and drawn upon us
the hatred of England." x This economic expansion
and the technical science upon which it depended
is the characteristic which has grown out of the
conditions of the new German Empire. It has
taken place hi a Germany which seems to us to be
cramped by a political system rooted in a bygone
age. Yet this system, in the main, is suited to the
national mind, and through all its developments
and transformations " peaceful penetration " and
methods akin to it have been determining influ-
ences.
We may conveniently show under two or three
heads the channels through which Germany has
carried on this work.
"
1
Militarismus und Kultur in Deutschland " (Scientia,
1915, II), quoted by M. Hauser.
18 PEACEFUL PENETRATION
METHODS OF WORKING
1. and Secret Agents.
State Activities, Diplomacy,
There is no more pressing need to-day than that
the British public all over the world should know
what the Germans really aim at. German methods
of combining trade, politics and espionage have
been part of the scheme of Weltpolitik, and the
efforts to control industries and commercial spheres
all came within the organisation. The
state
subsidies to steamship companies and differential
railway rates for goods to be exported, were among
the mildest methods. These were employed at
home. Abroad, German consuls were not only
assistingGermans to secure business as far as their
success was due to their being abreast of commercial
needs and to superior commercial training it was
legitimatebut to secure control of "key industries,"
and they were constantly intriguing for political
ends. German business firms, German schools,
German individuals settled in foreign countries,
were in communication with Berlin, and a network
" "
of interests was created which would form the
nucleus of a Deutschtum able to render help material

help, if necessary in the event of an open rupture


of peace conditions.
Those who have seen Germany only at home, and
know nothing of her expansion and her special
activities in the world at large, have but an incom-
"
plete picture of what Deutschtum stands for. Her
WHAT IS PEACEFUL PENETRATION ? 19

pioneers and prospectors, her informers, in the


political and economic world alike, spread abroad
everywhere, they make inquiries, study, calculate,
intrigue, obtain concessions under the aBgis .of con-
sular agents of unconquerable determination, and
their efforts are anxiously followed by the mother-
country."
l
The combines known as kartells have
worked in the closest co-operation with the Govern-
ment and the consuls. If the latter can secure a
contract for Germany it is a matter almost of in-
difference what particular firm carries out the order.
The arrange that satisfactorily between
kartells will

them. These kartells, protected at home by a


tariff, are also protected by their own agreements
to pool their losses if they undersell abroad in order
to ruin a foreign competitor. Germany has made
the conquest of world-markets for political purposes
so essential an element of her industry that the
kartells,representing powerful organisations, in
which the most prominent personages in the Empire,
from the Kaiser downwards, were directly interested,
became the very marrow of this limb of imperialism.
For some years any mention of Germany and
" "
peaceful penetration called up a picture, not

always clear in its outlines, of spies, it suggested


exciting anecdotes of the workings of a well-
organised Secret Service. In the present work I am
mainly concerned with a more dangerous form of
infiltration than espionage for direct military
1
Victor Cambon, L'Allemagne au travail (1909), p. 250.
20 PEACEFUL PENETRATION
" "
purposes. Nevertheless, as
peaceful penetration
itself is but a part of a larger whole, some con-

sideration of Germany's spy-system is necessary


to an understanding of the general scheme. We
shall therefore review briefly the workings of the
German Secret Service and the career of the singular

personality who did more than any other man to


organise that Service and map out its future activities.
2. Industrial and Commercial. At home the
whole industrial life of Germany was organised
on principles that made it easy and natural for the
Prussian machine to move with the least possible
wrench to the work of war. That line of policy lies
at the roots of Deutschtum. In the middle 'seventies
"
there was an outcry all over Germany for more
science in education," the new Empire was entering
upon a commercial career that was to give it a posi-
tion of undisputed dominance in many industries,
and Germany's science, industry and commerce,
and military system were all designed to lend support
to one another. The Germans themselves, at home
and abroad, were of course well aware of the ends
in view. They knew that some of their methods
" "
of peaceful were suspected. In
penetration
1901 Count Du
Moulin-Eckart was highly indignant
because Germans in England had been reproached
with conducting their business in a way that was
"
Only a month before the war
*
not straight."
1 " Der "
Vorwurf unreellen Geschaftsbetriebs (Englands
Politik und die Mdchte, p. 16).
WHAT IS PEACEFUL PENETRATION ? 21

I was reading a detailed account of the course of


instruction in the Commercial High School, Munich,
and what impressed me wag its thoroughness and
spirit of nationalism, of Germanism as an expansive
force, that pervaded the whole. Those well-trained
German clerks, whom all travelled men meet every-
where, have grown up in a similar atmosphere.
Whether he works hard for a small salary till he can
gradually, with help from Home, show how to run
the business on cheaper and better lines without
the local clerk at all, or whether he returns to the
Fatherland with a valuable stock of information
about the firm's customers and methods, the German
clerkis fulfilling his part of the programme.

In every commercial centre of Europe Germans,


naturalised in the country to be exploited, have
overrun the Stock Exchange. In many cases they
at first took partners, whom they soon bought
out, subsequently bringing hi their own staff of
clerks from Home. Germans also had a tight grip
on the metal market, on the copra market, on the
sugar supply, had almost a monopoly in certain
kinds of explosives, chemical dyes and tungsten.
The last, a powder extracted from wolfram ore, is
a primary necessity for hardening armour-plate,
and therefore vital to our existence. Partly by
" "
controlling industries and the output of raw

products, partly by her Superior scientific equipment


Germany was reducing Great Britain to the condition
of an economic vassal. In industries and products
22 PEACEFUL PENETRATION
on which our national existence depended she was
in a position to put the alternative Buy from
:

Germany and on her terms, or go without. That


was the meaning of " control " of " pivotal " in-
dustries. The most living proof of what this " con-
"
trol meant is afforded by the unanimity of the
Allied Economic Conference held in Paris in June
1916. Representing so
many antagonistic interests,
economically, yet there was complete agreement
in calling for common action to put an end to the

vassalage to which Germany was reducing other


countries. The whole work and scope of the
Conference is summed up in the single recommenda-
"
tion to take measures to render themselves inde-
pendent of the enemy countries, in so far as regards
the raw materials and manufactured articles
essential to the normal development of their
economic activities."
3. Naturalisation. This subject opens up mo-
mentous questions which must be dealt with in
a separate chapter. A favourite device of Germans
throughout the civilised world, but especially in
Great Britain and the Dominions, has been to go
through the form of naturalisation. This has
enabled them to hold responsible positions on
directorates, to exercise a controlling influence in
many evade the provisions, or the
industries, to
intent, of the Merchant Shipping Act, and to assert
themselves politically.
4. Agents provocateurs. Throughout the Morocco
WHAT IS PEACEFUL PENETRATION ? 23

crisissyndicalism seemed likely to threaten the


whole social structure in France, and in the United
Kingdom the Government found itself face to face
with serious strikes in England, and with disorder
in Ireland. Germany's secret agents had been on
the move for years in these countries. They sup-
ported, at one time the Ulstermen, at another the
Sinn Feiners, and helped both to obtain arms. The
Dublin outbreak of April 1916 is only the culmination
of a movement long subsidised from Germany.

During the first week of the war the Tageszeitung


(Berlin) and the Kblnische Zeitung, asserted posi-
tively the certainty of revolt in India and South
Africa, and the strong probability of Australian and
Canadian dissent from Britain's participation in the
war. A complete list of German activities in stirring
up disaffection among the Allies, or in neutral
countries where civil commotion might indirectly
hamper the Allies, would fill considerable space.
A few outstanding instances are Boers in South:

Africa, Arabs in Tunis, Bedouins and Arabs in


" "
Libya, Nationalists and Egypt, the
in India
"Nationalists" in French Indo- China, Germans
in Canada, Moslems in Persia, Madagascar, and

elsewhere, insurgents in Mexico, German-Americans


in the United States, and there is abundant evidence,

though doubtless some of the details must be


received with caution, that the Sinn Fein rising was
partly engineered by Germans in America. From
the outset recruiting in Ireland was slack and the
24 PEACEFUL PENETRATION
German newspapers, in noting this fact, reproduced
extracts from Irish Freedom, the fervid pro -German
publication which declared that the stories of
German were pure inventions of the
atrocities

English Press and public.


When two nations are at war each may be ex-
pected to utilise the internal troubles of its opponent.
A hundred years ago France gave active support
to the American colonies and to the United Irish-
"
men. The German War Book " contains a long
" "
list of permissible methods of weakening the
enemy bribery, with the
object of obtaining
military advantage, acceptance of offers of treachery,
reception of deserters, and utilisation of any dis-
"
contented elements in the population. Indeed,
international law is in no way opposed to the ex-

ploitation of the crimes of third parties (assassina-


tion, incendiarism, robbery and the like) to the

prejudice of the enemy." But Germany knows


" "
her prospective enemy long before the declara-
tion of war. Her campaign for sowing the seeds
of disaffection has not only been systematic, it has
been preparing in normal times. Her agents include
princes of the various royal houses, ambassadors,
consuls, as well as arch-traitors and conspirators
likeRoger Casement.
The Press. The agents of German propaganda
5.

have especially worked for the cause through the


medium of the Press. The preparation of reports

and literature for foreign countries is carried out


WHAT IS PEACEFUL PENETRATION ? 25

by special branches in several Government depart-


ments. These are forwarded to consuls and others
and distributed to the best advantage. Before the
war the " German " Press in Antwerp openly
advocated Pan- Germanism. A branch of the
" "
Alldeutscher Verband (Pan-German Union) was
actually established here, and in election contests
both this body and the section of the Press which
supported it took vehement sides. In many cities
of the United States the Press is very largely
controlled by Germans or German- Americans, who
lose no opportunity of furthering the interests of
Deutschtum, and the political activities of a section
"
of this German " Press are influenced from Berlin.
The really interesting correspondence found upon
the notorious von Papen was that which disclosed
the intimate connection between official Germany
and the colossal Press campaign that has been
carried on in the German cause. His letters to and
from consuls, vice-consuls, the ambassador and
others, showed again and again the hand of Berlin
and its Intelligence Department behind this cam-
paign. Thus General von Bernhardi wrote :

"
I have now written two further series of articles
for America. The Foreign Office wanted to have
'
the first Germany and England/
of these, entitled,
distributed in the American Press. The other,
'
entitled Pan Germanism/ was to appear in the
-

Chicago Tribune. I should be very grateful if you


could forward me one copy of each of these articles.
26 PEACEFUL PENETRATION
They will certainly have some sort of effect. That
is evident from the inexpressible rage with which
the British and French Press have attacked the Sun
articles."
The pro -German Press and the agents of the
German Foreign Office have in reality created a
new party in the United States, without reckoning
"
the general German vote." Men like Dernburg
and von Papen are trained for this work. It is

specially recognised in the activities of the In-

telligence Department. Any reputable American


journalist could secure an interview with the German
ambassador at Washington, and needless to say a
large number availed themselves of such an op-
"
portunity of getting copy."
The organisers of public opinion through the Press
work also negatively in the interests of Deutschtum,
that is to say, they exclude as far as possible matter
of an anti-German nature. I speak from my own

experience when I Say that for some years it was

practically impossible for anything anti-German


to find its way into at least two of the most powerful
organs of public opinion in Australia.
De Toekomst, De Standaard and one or two other
journals in Holland have been almost Pan-German
in their tone, and have actively encouraged German
propaganda all over the country.

6. Fraudulent Imitation. During my seven years


in Germany case after case was tried in the courts,
arising out of the sale of articles as English, which,
WHAT IS PEACEFUL PENETRATION ? 27

it was proved, were only partially so. I shall


subsequently give numerous instances of Germany's
system of counterfeit imitation developed to the
point of a fine art. The following two statements
are from consular reports quoted by Victor Berard
in British Imperialism and Commercial Supremacy :

"
In the big bazaars of Buenos Ayres, German
agents offer German cutlery with English marks
"
at absurdly low prices (p. 68).
"
As for hardware and toys, the Americans
have earned a reputation for skilful and con-
scientious work. Germans can only compete
"
with them by copying their models (p. 70).

French trade has probably suffered still more from


this dishonourable practice.
7. Other Agencies. For the most part the or-

dinary foreigner in Germany only saw one aspect


of a movement that had long been gathering strength.
Certain organisations such as the Navy League
and the Pan-German Union had been working
aggressively for about two decades, and of their
activities a good deal was known. But other
organisations and influences were working through a
process of infiltration in Poland, Rumania, Turkey,
Russia, Belgium and Holland, and they had extended
their operations to the United States, Canada,
Australia, and to all countries abroad where Germans
had settled. Such organisations as " Deutschland
28 PEACEFUL PENETRATION
im Ausland" ("Germany Abroad") and "The
"
Society for German Schools Abroad were especially
"
energetic. The whole Germany Abroad " move-
ment had become a,n important part of a vast
" "
programme. An imperium in imperio, a colony
ostensibly engaged solely in commercial and cultural
pursuits but really combining these with organised
Deutschtum, is what many Germans abroad have
constituted for ten or fifteen years. The establish-
ment of their own schools I had always regarded as
a particularly insidious and dangerous menace to
our national interest in Australia, South Africa and
Canada. In Holland and Belgium German schools
have existed for many years, and in Antwerp to-day
are young Germans who were educated in these
schools,and who entered with the invading army
eighteen months ago. The special nature of the
menace from this and kindred movements will be
best understood from comparisons. In Paris there
"
is an American colony," in every large Australian
"
city there are French and Italian colonies," and
in some districts in Australia the Italians outnumber
" "
the Germans. In what respect do these colonies
differ from the German ? They have never ex-
ploited local national feeling, they have never
agitated for their own schools, the churches used
by the rest of the community are good enough for
them, their clubs are not centres of political pro-
paganda, they have never been in direct communi-
cation with their own Home Government. French
WHAT IS PEACEFUL PENETRATION ? 29

and Italian colonists have not been missionaries.


One striking feature of this organisation in the cause
of Deutschtum has been that it has embraced all
classes clerks, waiters, artisans, hair-dressers, as
well as the wealthier and better educated.The
latter, supported or encouraged by the German
Government, helped materially to supply funds
for the propaganda.
German religious missionaries have time after
time worked directly in the interests of political
Deutschtum. In India, Africa, Australia, Russia,
and China, they have not only endeavoured through
their churches to influence their own flock, or native

races, in favour of Germanism, but they have not


scrupled to assist other German agents engaged in
the campaign to undermine the sovereignty of the
1
country that gave them welcome and hospitality.
Some interesting particulars of German missionaries and
1

their workfor Deutschtum will be found in Pierre Alype's La


"
Provocation allemande aux Colonies (1915), Du c6t6 des mis-
sions," pp. 207-8.
CHAPTER II

SLEUTH-HOUNDS
I. WHAT ARE SLEUTH-HOUNDS ?

CIRCUMSTANTIAL stories of German espionage have


been unfolded to the English-speaking world since
"
August 1914, and its methods of working for the
"
cause have been explained in some detail. But,
however alluring the hunt for German spies, the
venture is one which will yield poor results to those
who confine their attention to sifting the contents
of official bulletins, or to following the current gossip
on the political events of the time. The German
"
Geist," in its relation to that marvellous organisa-
tion known as the German Secret Service, will not
be diagnosed by this process. The growth of that
Service has been complex. Its present organisation
can only be grasped very superficially by the average
journalist in England or by the ordinary sojourner
in Germany. We all speak of the Prussian State-
system, of the Pan- German movement, of German
undermining, of German spies. These are not made
out of nothing. They fit in naturally with certain
conditions of German character and certain tradi-
tions of German history. The whole of Prussian
so
SLEUTH-HOUNDS 31

expansion, of Germany's successes, has been due to


methods and proceedings akin to espionage and
"
peaceful penetration." Prussia owes her military
triumphs to planfulness based upon secret prepara-
tion, followed by a stroke when she thought
" "
her hour had struck. This penetration was
playing its part in the other twenty-four antagon-
istic German States long before all were consoli-
dated under one leader. They have learned their
lesson. Continuity of policy is their watchword
the policy which is to carry the Prussianisation
beyond themselves to the world. Germany leaves
pioneer work to others and then penetrates
systematically. Espionage is one of the levers
"
of penetration."
Von der Goltz in Das Volk in Waffen (Berlin,
1883) pays several compliments to the German
"
Secret Service Nowadays troops take into the
:

fieldwith them important information about the


enemy, for the organisation of his army is carefully
studied in peace time. This is an essential part
"
of the work of the General Staff (p. 215). On the
"
next page The ill-repute which, under the name
:

of espionage, with help from foreign sources,


is,

heaped upon our intermediaries, is undeserved.


In the wars of to-day its advantages are limited.
When it was seen in France in 1870 that the German
commanders acted on the basis of manifestly correct
information there was a loud outcry against the
Prussian spies whose footsteps, they Said, could
32 PEACEFUL PENETRATION
be traced in every direction. This outcry only
' '

proved that the great nation of those days had


no clear conception of the business of war." Lucien
Nicot says that Baron von Rotenham, counsellor
at the German embassy in Paris, was not only
actively engaged in organising the interests of
Deutschtum, but was the regular prompter of
"
Beckmann, le grand chef de 1'espionage a Paris." 1
When Eugen Richter expressed abhorrence and
indignation at the conduct of the notorious Rumpff ,

the Secretary of State for the Interior (von Putt-


kamer) replied "If Herr Rumpff has obtained
:

valuable information for the State, even by the


means and methods just deprecated, I publicly
thank him for doing so." To make friend, ^r the
purpose of betraying them has become a system
and a duty to the State. Secrecy and surprise
have been mighty weapons in the armoury rl
Prussianism, but an important element hi it is
definite selection of the prospective enemy. The
efficiency of the engine has been built up while
the already selected opponent was unsuspecting,
and the engine brought to bear upon him unprepared.
Some months before the war the editor of an
"
English newspaper said to me in Berlin :
People
in England make an outcry about the Germans
thereand the spy-system. Doesn't every country
employ spies ? Haven't we got them in every
"
corner of the world ? There can be few individuals
" Ambassade allemande."
L'Allemagne a Paris, Chapter
1 L'
II,
SLEUTH-HOUNDS 33

in England, with an elementary knowledge of Euro-


pean politics, who are not well aware that every

country has an organised Intelligence Department.


Most of us have read in novels the strange romance
of Russianlife, we have heard how the secret

police works its Reign of Terror, Siberian prisons,


;

and the insidious ramifications of a bureaucracy,


corrupt in every hole and corner, have been minutely
described to us. Accomplished Russian ladies,
with a perfect command of several languages, are
to be found in parts of Europe, and their main
all

concern is not to advance the cause of theosophy


or the cult of the Higher Self. In some respects
the Russian Department is better
Intelligence
served than the German. But every authority on
Russia, on the Russian soul, knows that those
features of the system do not strike deep roots
into the heart of the people. Herein Germany
and her organisation present a marked contrast.
This organisation is itself part of the German Idea,
it is part of Deutschtum, the spirit that animates
it is essentially national, it is the soul of the
"
machine."Police, the military service, the
bureaucracy, the universities these form one com-
pact system working on a well-defined plan and for
a well-defined end.
The psychology of the Geheimpolizei (secret police)
isthe psychology of the nation. That is the answer
to the English journalist to whom I have just
referred. Once clearly realise this and the first
34 PEACEFUL PENETRATION
step is made towards a comprehension of the system
and the personnel which administers it. In
of

Germany the Service embraces all classes and


callings,and has within its folds and purview men
and women varying from the type of Bismarck's
" "
king of sleuth-hounds and the small fry of the
bourgeoisie down
to the veriest hanger-on told off,
for a few marks a month, to frequent some hotel
or Kaffeelokal where Social Democrats are known
to congregate. The extent to which an internal
system of espionage and delation ramifies over
Germany cannot be imagined by those who know
little or nothing of public and social life there. A
university professor or a schoolmaster makes an
unguarded statement very remotely antagonistic
to Prussianism, or distasteful to the Government, a
Civil Servant seen reading a Socialist newspaper,
is

remarks are made on tramways or in restaurants


by personages important or unimportant the facts
are immediately reported to headquarters, or find
their way to the Polizei -presidium, Police Head-

quarters, with every detail of time, place, and


circumstance. This Denunziantenwesen, as the
Germans call this system of informing and petty-
spying, permeates the police and the Civil Service,
and its effects are felt in ordinary business circles.

It creates an atmosphere.
The entire sweep of life, from the royal courts
to the Police Revier in the poorest quarters of any
large city, is coloured and mined with this
SLEUTH-HOUNDS 35

Denunziantenwesen. Blackmail, the threatening letter,


and the suborning of witnesses are not incidents
or malpractices in Germany, they are institutions.
The sensational cases of Baron von Tausch, Count
Eulenberg and Harden's exposures, are merely the
system of intrigue which is
surface -indications of a

always at work. Information similar to that


elicited at this trial is being collected every day in

Germany for blackmail and kindred purposes.


Everybody feels that everybody else is dogging his
footsteps or noting his every word and phrase with a
view to informing at the first favourable opportunity,
and a system is thus created which reacts upon
character with terrible effect. So much so that
one who comes in daily contact with Germans and
knows the national character does not look for
straightforward utterance or veracity. The spy
who is sent abroad has lived and moved in this
atmosphere. It isthe atmosphere of a Polizeistaat
(Police State). To comprehend the significance
of this word to a German one must live in a country
where the police, in addition to the thousand and
one ordinary duties of such a body everywhere else,
exercises a general supervision over life and morals,

something like that exercised by the Roman censors,


and, like them, can put the brand of disgrace on a
citizen for life.

The German Secret Service is divided into two


great branches internal that is, for police and
:

detective duty in the ordinary sense, and external,


36 PEACEFUL PENETRATION
for espionage for military and political purposes.
Before Stieber's reforms and reorganisation the
military caste keenly resented any outside inter-
ference in the matter of military espionage. But
one may say to-day that practically all those who
are employed in the external branch of the Service
have graduated in the Home branch.
The average number of agents directly and in-

directly engaged, in normal times, in


secretly
collecting information, or in kindred work, for the
German Government, cannot be computed even
roughly. This work is combined with business
pursuits in a way which makes it difficult even for the
German authorities to arrive at an exact estimate.
Experts in the French Intelligence Department
about a decade the average number
assert that for
of Germans, male and female, in France engaged by
the German Government and in communication with
it, has not been less than 30,000. In 1887 Lucien
Nicot wrote :"In order to examine this question of
espionage seriously we must start from the principle
that every German in France is more or less a spy.
The Israelite, we are told, has the business instinct ;

the German has the spy-instinct." l Nicot also


gives an interesting account of Baroness von Kaulla
and her activities in behalf of the German Govern-
ment, as well as much information about the or-
ganisation of female espionage in the Service
"
generally. The organisation of this branch,"
1
i.e., p. 32.
SLEUTH-HOUNDS 37
"
he says, has been continued and extended since
the war, and to-day the German Chancellor counts a
certain number of women among the most useful
of his agents." 1
It must never be forgotten that all these agents,
except the females, are soldiers. They have been
trained under the Prussian military system, which
works along elaborate and well-organised lines,
and whose spirit brings out effectively whatever
spy-instincts there are in an individual. The same
characteristics of subtlety and duplicity mark the
Teutonic advance guard here as in the world of
commerce.
In Belgium and France the German Government
seems to have realised the most abundant harvest
from its Secret Service, but we can never hope to
know, even approximately, what the spy-system
here or elsewhere has accomplished for Germany.
The activities of the plotters in the United States
and Canada are also incidents in one general
campaign. This campaign is for the Fatherland,
" "
it is the German's duty Pflichtgefuhl comes
in here to enterupon it whenever the summons
comes. Whoever knows the nature of Deutschtum
knows too that the German is always ready to
"
respond to certain values."
After all, the real military spy who takes risks
isin a different category from the swarm of secret
penetrators and naturalised ghouls that Germany
1 "
I.e., Chapter VI, Les Femmes."
38 PEACEFUL PENETRATION
has sent into every quarter of the earth. The very
presence in our midst of an army of aliens engaged
in collecting information for a foreign Government,
and working upon plan and system, can be nothing
but a source of demoralisation to the community
at large. Those actually employed in the German
Secret Service were never the most dangerous spies.
Their work was always beset with certain restraints
and impediments. But the vast army of mercantile
employees, many of them naturalised without divest-
ing themselves completely of their German citizen-

ship, were doing the work of Deutschtum very


effectively.
In Brussels German ushers were all at their

appointed posts at the Government buildings when


the German army entered. From one end of
Belgium to the other, in town and country, pro-
minent among the invading troops were recognised
men who had travelled through the country time
after time as agents for electrical companies, as
sellers of beetroot seeds, of scythes and other articles .

" "
The enemy in our midst has been the subject
of innumerable meetings of protest and newspaper
articles in England for many months, and these
show enough that the very name of German
clearly
is loathed from one end of Great Britain to the other.

But they do not show that the German's inner soul


and its workings have been laid bare to the everyday
man and woman. At the close of business on the
Baltic Mercantile and Shipping Exchange on 8th
SLEUTH-HOUNDS 39
"
June, 1916, Mr. Marmaduke Lawther mentioned
cases of men of German extraction who were em-
ployed in very high official capacities under the
Government " (Morning Post, 9th June, 1916). It
is among these men and wealthy naturalised Ger-

mans, not among waiters and hotel servants, that


one must look in England for those traces of German
influence which are at work promoting Deutschtum

by fair means and foul. In high places, behind the


very scenes in every parquet in Europe, there are
German blood, German ideas, German money.
But the methods of working are adapted to the
circumstances of each country. In Russia we saw
in the notorious SukhomlinofE affair how the very
residence of the Minister for War had become almost
a central meeting-place for Germany's Intelligence
agents in Russia. In Scandinavia it is the ports
that are honeycombed with German naval and
seafaring men who have organised a system of
interrogating sailors and others newly arrived.
" "
In France the fixed post system has been
organised to perfection. In England and the
British Empire it is especially the naturalised
German who has been the deadliest underminer of
our national structure. If the people in England
or Australia, anywhere else, have rights of
or

citizenship for sale and accept the price they must


also accept the consequences. In the Daily Graphic,
"
8th June, 1916, Lord Headley wrote Financial :

men, business men and others with large interests


40 PEACEFUL PENETRATION
in this country have over and over again expressed
the opinion that our plans often go wrong because
the Germans get early information about them."
He also cites the case of an " influential German "
who was " more than suspected." When the
attention of the police was drawn to this case the
answer was " Oh, yes, sir we know all about him,
:
;

but we cannot touch him, he has too many friends"


Lastly, Germany employs a fair number of
German-Swiss and, especially in Scandinavia,
German-Russian subjects. Some of these are in
the direct service of the Intelligence Department,
but most of them serve as sub -agents for the real
principals. They have obvious advantages in

collecting information, for, remaining pure German


in name, language, and sympathy, they work under
cover of a Swiss or Russian passport.
d9ffl-riqeG ^oHol orii'xii- buikcrani &fcw od C8I nl
i& .tjjofhjuo'idT oioeivLiti Lngol lohmj; BB jUihsS
II. THE KING OF SLEUTH-HOUNDS
-WflQVL. )dj
" "
Glaubst du dieser Adler war dir geschenkt ?

The career of Wilhelm Johann Carl Eduard


Stieber is of interest in itself and also because it
brings into relief certain aspects of Deutschtum,
especially those aspects with which this volume is
concerned.
In the great events of German history we trace
the influence of a number of secondary figures that
seem to stand apart from their main current, and
SLEUTH-HOUNDS 41

yet throw instructive sidelights upon it. In the


Revolution of 1848, in the military campaigns of
1866 and 1870, as well as the diplomacy leading
up to them, the driving -power behind German policy
was working out of sight. The Prussian spirit
seeks self-realisation by alternate aggression and
intrigue, Stieber was the incarnation of this spirit
as expressed in the Secret Service of the Prussian
State, and some knowledge of his activities is almost
essential to an historical estimate of the period of
reaction in Prussia, 1848-1852, as well as valuable
for the study of the events which created the new
German Empire. But he was only the most skilful
of a large
body of similar agents.
Born at Merseburg, in the Prussian province of
Saxony, in 1818, he was educated in Berlin and
entered the law faculty in the University there.
In 1843 he was installed in the Police Department,
Berlin, as junior legal adviser. Throughout the

stirring five years that followed this appointment,


the period, that is, of the revolutionary movement
and popular clamour for a constitution, Prussia was
vigorously at work organising her Intelligence
Department, both for Home purposes and with a
view to sounding feeling in the other German States.
Many important publications of the decade, 1848-
1858, bear witness to the existence of the Geheim-
polizei, its evil effects, its corrupt methods of pro-
cedure, its Reign of Terror. Ernst Fabri, a man
of penetrative mind and Vaterlandsliebe, patriotic
42 PEACEFUL PENETRATION
zeal in the best sense, who lived through those
stormy times, writes :

"It is not possible to describe the sinister


influence exerted by this Secret Police on the

general of the German people.


character In
many places where a spirit of frankness, sociability
and altruism formerly prevailed in society and
public life, now sullen reserve, cold aloofness,
and suspicion, ever on the prowl, are in
evidence."

(Die bffentliche Meinung und die Politik in Hirer

Wechselwirkung, 1852, p. 71.)

Stieber himself, in collaboration with Dr. Wermuth,


Police Director in Hanover, in Die Communisten
Verschwbrungendes neunzehntenJahrhunderts (Berlin,
1853, 1854), has given some illuminating details
of the communist movement of 1848 and the
immediately preceding years. account can A full
be found here of every communist and socialist
society then in existence in Germany, and of some
in other countries. An appendix contains a list of

every prominent Socialist residing, or born, in Ger-


many, and a minute description of the career and
1
personal appearance of each. Throughout the
1
It interesting to turn back to this old
is
"
human document "
and read some of the names and records in Stieber's black list.
"
Carl
"
Marx is " one of the most dangerous and talented
"
members of the revolutionary party." His personal ap-
"
pearance" is thus described: Age, 35; height 5 feet 10 or 11
inches, Hanover measurement ; stature thick-set ; hair, black
and curly forehead oval eyebrows, black
; ; ; eyes, dark brown
and inclined to dullishness nose, thick; ; mouth, medium ;.
SLEUTH-HOUNDS 43

revolutionary .period, in particular the years 1847


and 1848, Stieber, acting in the interests of the
" "
Police Department, was a fiery supporter of the
communist movement, especially of the weavers in
Silesia. He disarmed suspicion by defending,
before the court-martial, the revolutionists accused
of treason.
" "
Stieber pursued his methods of service with
what he always boasts of as his Rucksichtslosigkeit,

unsparing disregard of consequences to his victims.


So much so that on 13th April, 1860, he was arrested,
and throughout this and the following year he had
to defend himself on a number of serious charges

illegal threatening, depriving of freedom, abuse of


office, and Notigung, which is really a form of
blackmail though not so severely punished by the
German law as that form of blackmail called
Erpressung.
The speeches he makes to rebut those charges are
allvigorous and all disclose a minute knowledge of
the personalities and forces working against him.
"
The whole criminal world stands formally arrayed
"
against me
he exclaims in one of these speeches.
!

In the total result Stieber was acquitted, but he


was removed from the regular staff of the Police
Department. From 1861 to 1866 he was a Privat-
mann he had no official standing with the Criminal
beard, black ; chin, round ;face, fairly round ; complexion,
healthy ;speaks German in the Rhenish dialect, and French"
(II, p. 80). Other names in the list are Freiligrath, Ledru-
"
Rollin, Mazzini, Robert Owens," and Adolph Lothar Bucher.
T
.
* 70 <
'aJr:
44 PEACEFUL PENETRATION
Police,but his services were at their disposal and
constantly used by them.
Though Stieber's earlier work in Silesia, and
during the revolutionary period generally, brought
him into marked favour with Frederick William
IV, King of Prussia, it was Bismarck that saw more
keenly than any other all the latent possibilities
in the man. He soon became the " king of sleuth-
"
hounds for a Minister-president who was always
ready to advance the cause of Prussianism, whether
by spies abroad or by bogus revolutionaries at home.
These two, whose natures had so much in common,
were first brought into close contact in the autumn
of 1863, through the intermediary of Brass, founder
of the Norddeutsche Allegemeine Zeitung. Stieber's
unofficial services, privatpolizeilich, for the Russian
Government were well known to Bismarck. Himself
imbued from head to foot with the spy-instincts,
Bismarck was immediately conscious of qualities
that only needed development along the right lines,
and he at once set to work utilising Stieber, without
giving him any official status. Information might
be gleaned in Bohemia that would be useful later on
to the Prussian military authorities. It was in
October 1864 that Stieber visited Bohemia, travelled
as a pedlar from village to village, and honeycombed
with his agents the route along which he knew the
Prussian army would one day march Of the current
.

stories of his Bohemian activities the most interest-

ing to the popular ear are apocryphal. What is not


SLEUTH-HOUNDS 45

apocryphal is Sadowa and 3rd July, 1866. The


road to them was made easier by Stieber. As soon
as Bismarck had decided to bring to a head the long

pending issue between Prussia and Austria he sent


and told him he was Chef der Feldpolizei.
for Stieber
The king of sleuth-hounds understood exactly what
the nomination meant. A month afterwards he was
Herr Geheimrat Dr. Stieber.
Towards the end of this same year Stieber
entered upon his similar but more extensively
" "
organised service in France. Here he travelled
in style. In Haut-Rhin, Bas-Rhin, la Haute-
Marne, and every important district or town that
lay on the route which the helmeted hosts were to
"
take, he had his fixed posts." By the date of the
outbreak of war the Intelligence Department in
Berlin was in possession of nearly two thousand

reports containing every detail of information of


strategic or military value concerning these districts,
and many of the reports were accompanied by
elaborate maps. In advising head-quarters to send,
in small batches, Prussian labourers and others
to localities indicated from time to time, Stieber
declared that they would be welcomed in France,
where the German working-man was looked upon
as "industrious and docile." l He divided the whole
" "
district to be worked that is, the fourteen
departments in which the Prussian army would
1
Jules Michelet, France before Europe (1871), Cap. IV,
"
German Espionage," has some striking remarks on this subject.
46 PEACEFUL PENETRATION
later operate into four inspectorates, and the chief
of each of these had his head-quarters in Geneva,
Lausanne, Brussels or Berlin, not being permitted
to enter France at all himself. But why was this
vast activity unknown to, or ignored by, the French
authorities ? First, their own Intelligence De-

partment was ill


organised and could not cope with
the situation. Second, these agents of Deutschtum
disarmed suspicion by the prominent part which
they took in the everyday affairs of the community
around them. They were, indeed, specially en-
joined to take this interest in local matters and the
social life of the circle in which they moved. Stieber's
" fixed "
posts and their collaterals were of both
sexes and every variety of vocation farm labourers,

shop-keepers, commercial travellers, waitresses, and


domestic servants. That they were welcomed in some
" "
districts as being industrious and docile is a

point well worth noting. When Stieber laid stress


on he brought into relief those finer traits in
this
the Prussian character so lucidly displayed in his
own career. That career constitutes a page in
Prussian history. All this was before 1870. But
the advice was not meant for a day, nor for an
occasion. In April 1916 M. Raphael- Georges Levy
"
tells us that the same dissimulation, obsequious-
"
ness, and tenacity had been permitted to work on
unchecked and unheeded. " We ought to have
" "
suspected them (these German emissaries) as

dangerous to our safety. ... On the contrary, we


SLEUTH-HOUNDS 47

invited them to enter our houses, and we supplied


"
them trustfully with the fullest information
(Quarterly Review, April 1916, p. 393). An en-

cyclopaedia of factsand comments could not throw


more light on the two types of national character.
Stieber might never have lived, and Nicot and
Tissot never have written, as far as the inner heart
of the French people was stirred to the danger of
German "colonies" and " fixed posts." In 1913
Leon Daudet said that even Frenchmen were strictly
forbidden to approach the forts at Blenod-les-Toul
and Saint -Mihiel (the latter of which has figured so
largely in the newspapers since the war), but that
Germans under various pretexts found their way
to these places The large German firm, Orenstein
!
*

and Koppel, was specially commissioned by the


German Government to gather all information about
the French eastern forts, and two of the employees,
Cohn and Schwartzhild, were proved guilty of
espionage. He gives a list of eleven individuals
connected with this firm who formed a veritable
" "
ant's nest of Boches at Lille, some of them
registered under good French names. Hermann
Mumm seems to have made a real effort to entitle
himself to be called the Stieber of his time. He
organised a regular staff of German
spies in various
localities. Almost immediately after the outbreak
of the present war the German armies found, in the

parts of France which they occupied, every possible


1
U Avant-Querre (1913), pp. 265 and 267.
48 PEACEFUL PENETRATION
arrangement made to receive them, remarkable
places for cover, concrete terraces for heavy artillery,
and provisions or necessary implements in quarries.
Kessler, a Swiss, had organised a similar staff in the
Champagne district. 1

This combination of commercial pursuits with


espionage and political services for the German
Government has closely followed along the lines
laid down by Stieber. It has ramified in the most
wonderful ways all over Italy. Anton Bragaglia
shows how men engaged in quite legitimate business

yet act as agents for foreign governments indus-


trial organisations, mining companies, commercial
agencies of all kinds, establish themselves in the
country, as far as possible in localities and along
highways from which they can glean useful
of traffic

information, and which even afford scope for acts


"
of sabotage. 2 Ezio M. Gray declares that German
" "
espionage is a national function and that Ger-
"
man and " spy " are convertible terms. He also
points out that German Socialists have for years
been working for Deutschtum in Italy, often as
direct agents of Berlin, spying on political move-
ments, directing labour policy, and subtly corroding
the conscience of Italian Socialists. Sudekum's
mission for the German Government and its im-
perialism, carried out under the cloak of comrade-
"
ship with the internazionalisti," is laid bare to the

1
Hora du joug allemand (1915), pp. 262, 283, 300-9.
2
Spionaggio (1915), pp. 64 seq.
SLEUTH-HOUNDS 49

light of day. The whole of Signer Gray's intro-


"
ductory observations on The German idea of war
"
in peace time reveal piercing insight into the
German national character. One cannot help feeling
that as far as the Germans in Italy are concerned
"
he is justified in his severe summing-up All :

Germans are spies." 1


Stieber was a true Prussian. We have already
referred to his own
claims to be regarded as relent-
less and unsparing to his victims. He boasted to
Bismarck " Your Excellency, lack of RucTcsichtslo-
:

sigkeit has never yet been a reproach brought against


me " (Memoirs, p. 279). The man who told the
authorities that batches of Prussians, who were to
do the work of espionage, would be welcomed in
parts of France because they were considered docile,
wrote to his wife (18th August, 1870) from one of the
" "
fixed posts occupied by these gentle and un-
"
suspected advance agents of Preussentum We :

have razed this beautiful town to the ground. Soon


hunger-typhus and hospital gangrene will break
"
out (p. 259). The following from a letter dated
22nd August, 1870, is German to the core, urdeutsch :
11
What an awful feeling for the proud Frenchmen
to see our soldiers in their best rooms and beds,
while they themselves are in the kitchen or lying on
straw, forced to wait on and feed the foreign in-
"
truders (p. 260). He relates with great gusto
the punishment inflicted on a French peasant who
1
Ulnvaaione tedesca in Italia (1915), pp. 44-6 and 183 seq.
50 PEACEFUL PENETRATION
was said to have fired on a conveyance taking
Prussian wounded from the field. He was hung
" "
up by the arms and slowly shot to death with
" "
thirty-four bullets. Frightfulness in the German
character was not developed in a day.
Bismarck and Stieber could have heard all the
If
stories circulatedabout them they would probably
have thought that even they were weighted with the
traditions of their country. At the time of the
Paris Exhibition (June 1867) Stieber discovered that
a plot had been formed to murder the Czar Alexander.
According to his own account he urged that the Czar
should avoid, both going and returning, the route
appointed for the military parade which he was to
attend but the Emperor Napoleon sneered at the
;

precautions and declared the reports to be un-


founded. Despite all precaution, the Pole, Berezow-
ski,succeeded in getting within a few yards of his
mark, and fired, but missed, hitting the horse's head.
A widely current later version of the incident is that
Bismarck and Stieber conceived a brilliant idea for
causing an estrangement between France and
Russia. They would allow the attempt to be made,
but would frustrate it at the last moment. The
French Government would not inflict the extreme
penalty of the law for attempted assassination
much to the chagrin, doubtless, of the Russian

oligarchy.
The authorities for Stieber 's career are mainly :

(1) Die Communisten-Verschworungen des neun-


SLEUTH-HOUNDS 51

zehnten Jahrhunderts, von Dr. Wermuth und Dr.


Stieber (Berlin, 1853, 1854) ; (2) The Memoirs,

supposed to be based upon his own records, published


in Berlin in 1883, that is, the year after his death,
under the Denkwurdigkeiten des geheimen
title

Regierungsrathes Dr. Stieber ; (3) the references to


him in Zerniki's Erinnerungen, Louis Schneider's
Aus meinem Leben, Wollheim da Fonseca's
Neue Indiscretionen, and the writings of Moritz
Busch.
But how did Stieber work ? It is impossible from
any of those sources to gain real insight into Stieber's
pre-war activities, into his methods of appointing
"
agents and establishing them in fixed posts." His
Memoirs, in other respects not always trustworthy,
are almost a blank on this head. The most im-

portant passage in the whole record is not that


relating the details of the Hinckeldey and other
police cases, nor even the story of Stieber as
" "
Madchen fur Alles (general maid-servant) in
Versailles. It is the following from pp. 248, 249 :

"
In November 1869 Stieber was commissioned
by Bismarck to proceed to Paris and there obtain
exact particulars about the political and military
situation in France. The commission was in
especial due to new military inventions the
chassepot and the mitrailleuse. Stieber had for
some years kept in close communication with a
number of French agents, who were in touch with
52 PEACEFUL PENETRATION
both political and military circles in Paris. With
the help of these agents he was able to secure
valuable material for an exact estimate of the
existing position of France, and to put this material
at Bismarck's disposal."

No part of Stieber's routine likely to disclose the


working of his system could come under the public
gaze. The German Government knew something
of his papers and their contents. What does come
to light from the Memoirs, and from all that is
written about him by Schneider and others, is that
Stieber was a born psychologist. He knew his own

people and soon fathomed the foreign people among


whom he had to carry on operations. This latter
is not an outstanding characteristic of the Germans,

who, though in some respects cut out by nature


for spying, are nevertheless no supermen even as

agents of the German Intelligence Department.


But Stieber was endowed with the staidness of the
Teuton and something of the imagination of the
Slav, he was never hard up for an explanation or
embarrassed in any sudden emergency. He could
project himself into situations and work out all
their possibilities the essential mark of genius
in a spy. The greatest tribute to Stieber's memory
is the fact that the whole network of Germany's

Secret Service as it exists to-day shows his hand,


and where the system has been extended the ground-
plan remains as he left it. There is nothing over
SLEUTH-HOUNDS 53

which the average German will wax more indignant


than any slur cast upon his good faith, and yet all
Germans are at heart proud of their Stiebers. This
is an anomaly to those that do not understand the
German character.
CHAPTER III

PEACEFUL PENETRATION AT WORK


s
IflTV/n^
I. IN THE BRITISH DOMINIONS
"While we were our easy chairs, peaceful pene-
sitting in
tration was making its in this country, but
way not only
in uttermost parts of the world, and Germany was becom-
ing dominant in the economic field." Sir George Foster,
8th June, 1916.

Australasia and the Pacific. In their world-


mission in the interests of Deutschtum Germans
have always worked along two main lines first,
theircommercial conquest fastened upon these
industries that are vital to national existence,
second, they renounced their own nationality and
assumed that of the country to be undermined.
In other words, they aimed at controlling these
industries, not merely at exploiting them com-
mercially.
Australia is one of the most important metal-
producing parts of the earth's surface. On the
outbreak of war the Commonwealth, with the rest
of the Dominions, placed all its resources, human
and material, at the disposal of the Empire. At
once the following situation presented itself to
54
PEACEFUL PENETRATION AT WORK 55

Government and people. Not only was the whole


vast metal industry of Australia in the grip of
German capital, but the Australian companies were
bound by contract to restrict the sale of their

products to certain agents who were sending the


ore to Europe for treatment. Who were these

agents ?Nominally, they were in London and bore


English names. In reality, they were in Frankfort-
on-the-Main, and quite good Germans. For several
months after the declaration of war the British
Government was actually buying Australian lead,
zinc, and copper, through this German agency.
This meant that the public and the companies were
face to face with the alternative of closing down the
mines altogether and throwing thousands of men
out of work, or of continuing to allow German
agencies their sole rights under their contracts, that
is, to control the Broken Hill Mines, the Associated

Smelters, and other industrial organisations, and


determine both the output and the destination of
" "
the ores. In practice control had worked out
in this fashion Great Britain paid 90 for spelter
in America, Germany paid 30 for spelter produced
mainly from Australian ores. It was to meet this
situation, to deal with enemy shareholders in com-
panies incorporated in Australia, that the Common-
wealth Government passed the War Precaution
Act. Every German contract was annulled, every
German trade-mark cancelled, and every com-
pany given three months' notice to strike every
56 PEACEFUL PENETRATION
German shareholder, naturalised or not, off their
register.
The more Australia came within the sphere of
Germany's commercial enterprise the more this side
of Deutschtum became manifest to those that had

eyes to see. All the German Shipping Companies


trading with Australia were heavily subsidised by
their own Government, they were all missionaries
"
on the new course " as much as traders, and sent
elaborate reports to head-quarters on Australia's
coast defences and fortifications.
German savants were constantly visiting Australia
and New Zealand, and were everywhere received
with open arms. A number of these pioneers of
science visited Australia and took part in the

meeting of the British Association there in 1914.


In the Auckland Weekly News (13th January, 1916)
Professor MacMillan Brown, of New Zealand
university, gives some interesting particulars of
Professors Graebner and von Luschan, and other
members German party of scientists who
of the
utilised the hospitality shown them to take away

plans for use by possible German invaders. The


"
four representatives of German science, the glory
of the world," at the Science Congress in Australia,
were : Drs. Goldstein, Penck, Graebner, and
Pringsheim, who all remained in Australia after
war was declared. They afterwards approached
the Government for permission to return, on the
ground that they were international scientists and
PEACEFUL PENETRATION AT WORK 57
"
therefore neutral. Throughout they pleaded the
"
cosmopolitan character of science and its high
moral claims which set it above politics and disputes
concerning frontiers. When the Government as-
sented, provided they took the oath of neutrality,
Graebner and Pringsheim objected though even-
tually consenting Their general demeanour aroused
.

suspicion, and correspondence was intercepted


which proved them to be spies. Penck, who took
the oath without demur, had sailed for England, and
"
his baggage was overhauled en route. It was
found to contain more complete information about
than the corre-
Australia's military preparations

spondence which had been intercepted, while he


also had military contour maps of the country and
the surroundings of the capital cities, representing
many months' work and having no vestige of use
other than to serve the ends of a German army
in the event of invasion. It is proved con-
clusively that these scientists were official German
1
spies."
In the first chapter to this book I have referred
"
to an article, European Emigration and the
British Empire," which I wrote in the Sydney
Daily Telegraph, 27th December, 1913. This
was clearly directed against a certain German
1
Auckland Weekly News, 13th January, 1916. It will be
remembered that when Penck arrived in England he was re-
cognised at once as the leader of several scientific
" expeditions
"
to the Isle of Wight, where he examined the peculiar geology
of the island.
58 PEACEFUL PENETRATION
element in Australia and elsewhere that was working
insidiously to undermine British influence. In due
course I received I was in Berlin at the time
a large batch of letters from Sydney acquaintances,
some confirming the views expressed, but most
disapproving. Since the war the average Australian
has become familiar with many things that were
known to me
long before December 1913. I in-
sisted, as I have for years, on the great danger of

allowing any foreign nationality to establish their


own schools, as the Germans have done in Canada,
South Africa, and Australia. The Sydney Bulletin,
3rd February, 1916, says :

"
Between the Schmidt who brought a German
wife to Australia long ago, but had paid several
visits to Berlin in the meantime, and has reared
his Hun brood in a very German home atmosphere,
teaching them the language, feeding them when
he could with German literature in the presence of
portraits of der Kaiser between him and the
Schmidt who came here as a bachelor, married a
local girl, and let his offspring grow up as Aus-
tralian natives, in ignorance of their dad's
language, there is a vast difference."

Think then of the Schmidt who, in addition to all

these methods of instilling Deutschtum into his


Australian children, claims the right to send them
to a German school where the whole atmosphere is
PEACEFUL PENETRATION AT WORK 69

deutsch-national. I well remember a good many


years ago a German youth, seventeen years of age,
born in South Australia, had to give his evidence
in the Adelaide Supreme Court through the medium
of an Judge Boucaut, who tried the
interpreter.
case, gave expression to strong indignation and
declared that he would bring the matter under the
serious notice of the Minister for Public Instruction.
In the early days of the war I met, at the American
Embassy in Berlin, a young fellow, about eighteen
or nineteen years of age, who told me that he was
born in Queensland and lived there till he was
sixteen. He could only speak broken English and
was violently anti-British. He said he had been
sent as a boy to a German school.
Not long before the war a German missionary was
stationed in the remote North-West of Australia.
One of his reports to Berlin fell into the hands of
the Australian Defence Department and proved
conclusively that the man was nothing more or less
than a spy. In a tabulated list of questions, to
which he had to provide answers, one was :

"
How many persons could your district support
"
with food, and for how long ? General Legge,
after careful study of the document, said that the
whole thing could only have a purely military sig-
nificance. 1
Even the German churches in Australia and New
1
The Advertiser (Adelaide), 6th January, 1916 ;
The Age
(Melbourne), 4th January, 1916.
60 PEACEFUL PENETRATION
Zealand have been centres of nationalism. I have
a very distinct recollection of the old German church
in Goulburn Street, Sydney, and the Rev. Pastor

Schenck, who was in charge of its flock. He was


highly respected in social and religious circles, and
doubtless deserved this respect, but no one will deny
that his Vaterlandsliebe was strong and expressed
itself strongly. I received the same impression in
other German churches in Australia. According to
"
Mr. Poultney Bigelow, the Irish colonist's first
question is, how near the Roman Catholic church
"
may be . I have found that the German Protestant
doesn't trouble himself much about the church at
home, but a going concern in the colonies of
it is

other nations. Mr. J. Evans, of Adelaide, South


Australia, said on 7th April, 1916, that the German
churches throughout the State had been declared
"to be hotbeds of disloyalty, and it was reported
'
that German pastors sent here ag Kaiser agents
'

held sway over the consciences of those of German


1
origin in Australia."
Deutschtum has worked out in practice exactly
as its agents desired, and as everyone who under-

stood its nature expected. I place side by side


the political aims of Germanism in South Australia
as expressed by Albrecht Franzius in 1884, at that
time one of Germany's foremost colonial advocates,
and the results in practice in 1916.
1
Advertiser (Adelaide), 8th April, 1916.
PEACEFUL PENETRATION AT WORK 61
"
:f
The position of the A deputation waited
Germans in Australia is on Mr. Vaughan, Pre-
developing along similar mier of South Australia,
lines.,and though the in connection with the

English and Irish ele- German schools in the


ments predominate, es- State. The Premier said
pecially in New South ifthe present Education
Wales, yet Deutschtum, Act did not prove effec-
especially in South Aus- tive the Government
tralia, has become a would be prepared to
power with which the adopt more drastic
*
localParliament already measures."
has to reckon." "
The Premier in re-

(DeutsMands Kolo- plying to a deputation


nien, 2nd ed., Bremen, on Friday, said the ques-
1884, p. 19.) tion of the relationship
of the German settler
to the State was the
most difficult one the
Government had to deal
2
with."

On the 1916) Mr. J. H.


same day (7th April,
Clouston, a well-known Adelaide citizen, declared
that German schools were known to be merely
feeders for the Lutheran churches, and the children
were not educated in accordance with the State's
system.
1
Sydney Daily Telegraph, 10th April, 1916.
2
Advertiser (Adelaide), 8th April, 1916.
62 PEACEFUL PENETRATION
Since the war the managers of German trading
houses in the South Sea Islands have lost no op-
portunity of impressing the natives with the
magnitude of Germany's and holding up
victories,
to them thecertainty of
Germany's emerging
triumphant from the present struggle. They have
been active in this way at Nukualofa, Tonga, and,
as far as they have been able to do so, in the Fijis.
Mr. J. H. Hedstrom, a member of the Legislative
Council of Fiji, said recently that he had doubted
whether there were twenty Germans in the whole
group. It is remarkable, nevertheless, that since
the war there have been distinct signs of unrest
among the natives in certain districts. 1
Baron von Hiibner, in his extensive travels

through the British Empire, seemed greatly in-


terested in the cause of Deutschtum in the various
Dominions. Speaking of New Zealand he said :

"
The Anglo-Saxon race will predominate, but it
will comprise the elements of other nationalities,
above all the German element." We do not need
We ought to
to be reminded of this fact in 1916.
compare the Baron's statement with the following
from a New Zealand journal thirty years later.
"
What of Germans who have lived here in New
Zealand ? What of the so-called naturalised Ger-
mans whom we have stupidly thought to be honest
men ? What of German consular officials, some-
1
Canterbury Times (Christchurch, New Zealand), 8th March,
1916.
PEACEFUL PENETRATION AT WORK 63
'
times naturalised,' who have systematically played
the spy upon us in the orthodox German fashion ?
It is all part of the same Kultur."
Canada. Professor Schulze-Gavernitz, who had
always professed a desire for a good understanding
between England and Germany, said in Naumann's
organ, Die Hilfe, shortly after Canada's offer
(December, 1912) of three Dreadnoughts to the
imperial navy had been rejected by the Canadian
Senate, that was greatly to the interest of Ger-
it

many that the movement in Canada for indepen-


dence from England should succeed. Canada and
her relations to Great Britain and the United States
have been a matter of some perturbation to the
Professor for many years. In 1906 he saw in the
opening-up of the Canadian West the strengthening
of certain leanings towards the United States,
because there would arise a distinct cleavage of
economic interests between this portion of the
Dominion and the industrial East. 1
" "
A Canadian writes in the Quarterly Review for
"
January, 1916 (pp. 3, 4) : We have thrown our
doors wide open to German citizens and extended
to them the same privileges that we gave to our
brothers from the British Isles." With what result ?
On 22nd March, 1916, Sir Sam Hughes, Canadian
"
Minister of Militia, said : The suggestion of
shortages of bank clerks, dry goods hands, mechanics,
and so on, had all been insidiously put forward by
1
Britischer Imperialismua und englischer Freihandel, p. 189.
64 PEACEFUL PENETRATION
people in sympathy with Germany, and, it was
believed in Canada, in the pay of Germany."

Only a few months before the war I read in a


Berlin newspaper an article exhorting all Germans
in Canada to keep in close touch with one another
and with the Fatherland, because they would be in a
position to agitate for, and insist upon, the re-
cognition of German
as a third official language
a suggestion doubtless well calculated to strengthen
the Dominion politically and economically.
The activities of Mr. " Bridgeman Taylor " and
others disclose a long-foreseen and carefully planned
scheme for outrages on canal locks and railway
"
junctions. That German intrigue has not succeeded
in doing more damage in Canada is due to the

activity of the officials of the British Embassy at


Washington, and to the valuable co-operation of
"
the United States Secret Service (Canada, 29th
April, 1916). The Canadian Gazette (27th April,

1916) said that by these outrages and by spreading


alarming rumours of an invasion German agents

hoped to cause such a panic that the Canadian


contingents would be kept at home.
South Africa. Bismarck once said that South
Africa would be the grave of the British Empire,
and throughout the conflict for supremacy between
the British and the Dutch elements one can trace
the hand of Germany working for the fulfilment of
that prophecy. Neither the Kaiser's telegram to
Kriiger just after the Jameson Raid, so needlessly
PEACEFUL PENETRATION AT WORK 65

offensive in its tone to British susceptibilities, nor


the outbursts of German jubilation over the British
disasters at Spion Kop and Modder River, were
born of the moment. In 1884 when Germany was
beginning her African colonial policy, Kriiger
visited Berlin and was received everywhere with
open arms. He had several long conversations
with Bismarck. They were able to talk together

fairly Kriiger speaking


well, Cape Dutch and
Bismarck Platt-Deutsch.
What has the recent history of South Africa
shown us ? Men like Hertzog, Maritz, and others
of near German descent, not the Dutch element,
fanning the flames of disaffection and racial an-
tagonism. The duplicity and vindictiveness of the
Teuton, much more than the stolidity of the Boer,
has characterised the attitude of nearly all the
leaders of the anti-British party, using this term in its
strict sense. Those who had lived long in South
Africa and knew the real Boer never had much
doubt as to which side he would support in a conflict
between Great Britain and Germany. The Germans
talked much about a kindred race and the brave
little All that was estimated at its exact
republics.
worth. For the genuine Boer always disliked the
German with a deep-down dislike, and regarded
him as a dangerous, designing neighbour. Most of
the Boers who, on the termination of the South
African War, went over to German South-West
Africa, gradually found their way back to the
66 PEACEFUL PENETRATION
"
Transvaal. Contact with official Germany has
done much to reconcile the Boer to his lot under the
1
English flag," says Mr. Poultney Bigelow.
The exact nature ol German complicity in any
rebellion or insurrection anywhere at any time is not

easy to determine. How far Hertzog or Maritz


was or was not a link between German agents and
Afrikander leaders only time can tell, and then
imperfectly. But the whole of the evidence before
the Rebellion Commission at Potchefstroom (May
1916) contained this in common long before the
present war De la Rey and Kemp had both re-
ceived ample assurance from German agents that
a scheme of operations had been planned, and that
in the event of an Anglo-German conflict Germany
would assist to restore the two republics.
In Berlin during the war, both before and after
the internment of British subjects in Ruhleben, I
had an opportunity of discussing with South Africans
the methods of working for the cause adopted by
the German element in different parts of the Union.
There was a consensus of opinion that the German
schools were nothing but centres of German nation-

alism, and that the German clergy lost no opportunity


of influencing German sentiment in a way that
would be politically useful to the Fatherland. The
Rev. Pastor Posselt, the German Protestant
missionary at Pinetown, Natal, called his mission,
"
Das neue Deutschland," and for twenty-five years
1
The Children of the Nations, p. 165.
PEACEFUL PENETRATION AT WORK 67

he strove to keep the national spirit aflame among


the German colonists there. All these influences
"
would assist in the maintenance of those small
"
compact communities which Baron von Hiibner
"
said were the characteristic of the German colonies"
in South Africa. 1
India. The Teuton had built towering hopes on
the prospect of disaffection in India and had long
prepared for the fulfilment of those hopes. In
May 1916 Mr. Chamberlain, Secretary of State for
India, declared that Germany confidently looked
forward to sedition in the Dependency and that,
"
on the outbreak of hostilities, the Germans used
every means to turn the situation to their advantage
and create trouble for us." For years a large
section of the German
Press had steadfastly, though
usually indirectly, worked to foster Indian nation-
alism. One favourite method of procedure was to
publish articles written, or purporting to be written,
by Indian students in Germany and others, always
"
accompanied by a short editorial note While :

not agreeing with all the statements in the following,

we nevertheless feel justified in giving publicity to


them." The Leipzig er Neueste Nachrichten was
especially active in this way.
The far-reaching nature of the German propaganda
is evidenced by the fact that American
newspapers
working in the interests of Germanism, and con-
taining articles that represent British rule in India
1
Through the British Empire, p. 139.
68 PEACEFUL PENETRATION
as one long record of injustice, have for years found
their way into various parts of the Dependency,
where they have been distributed to the best ad-
vantage. Louis Edgar Browne, of the Chicago
Daily News, has just visited France, Italy and India.
He found the last -mentioned country " quiet,
peaceful and loyal," and in such marked contrast
to the reports widely current in the other two
countries mentioned that he condemned both the
British and Indian Governments for taking so little
trouble to refute the spread by their enemies.
lies

No better instance could be found of the gaping


difference between German and British methods of
"
creating or influencing public opinion." On this
and many other questions German agents have for

years been circulating malignant fabrications of


every kind. We have not even taken the trouble
to contradict them.
When was living in Dortmund and Hamm, in
I

Westphalia, and in other Catholic parts of Germany,


on several occasions I saw circulars issued to the
faithful urging them to subscribe to German
missions in India. On investigating more closely
I could not avoid the impression that there was a
good deal of Deutschtum mingled with the religious
zeal. The evidence that German and Austrian
missionaries in India have exerted their influence
in this direction is simply irrefutable. In March
1916 the correspondence published anent the
Austrian missionaries and their families, whom the
PEACEFUL PENETRATION AT WORK 69

Indian Government sent home in the Golconda,


showed that the authorities in the Ballplatz were

highly indignant because those apostles of Chris-


"
tianity plus Germanism had been described as un-
desirable." Germans and Austrians are past-
masters in making momentous issues turn upon the
meaning of a word. A letter which appeared in the
Morning Post on 4th May, 1916, dated from Calcutta
7th April, 1916, stated that serious harm had resulted
from the Government's dilatoriness in the matter
of interning German missionaries, and that the
"
possibility of these propagandists being allowed to
return to work in India is unthinkable." Some idea
of the character of these missionaries is gleaned from
the following extract from a report which appeared
in the Manchester Guardian, on 5th May, 1916 :

" " "


By the end of the year (1914) it had been
proved to be necessary to intern a considerable
number of the German missionaries at Ahmednagar.
. . . This week's Indian Mail announces that the
European Association last month addressed a
communication to the Government of India stating
that they do not consider it possible that the Govern-
ment can contemplate allowing German missionaries
to carry on work in India after the war. The
communication further mentions strong grounds for
the belief that German missionaries had been
responsible for seditious propaganda."
The Chambers Commerce throughout India,
of
without a single exception, passed resolutions at the
70 PEACEFUL PENETRATION
beginning of 1916 demanding that all enemy stocks
should be realised forthwith, and that as soon as
the war was over present alien enemies should be
expelled from India. They further urged that no
should be given to German steamers trading
facilities

with India unless the same facilities were accorded


British steamers
trading with Germany. They
emphasised that the German mercantile marine
was one of the principal agents for carrying on
politicalpropaganda throughout the world. Their
" " "
report concluded, They (Germans) should be
prohibited from owning land, from establishing
banks, companies, or factories, or acquiring con-
trolling interests in such nor should they be
;

allowed to form clubs, associations, or societies of


any kind." To give effect to these suggestions they
have asked the imperial Government to consider,
and if necessary, to amend, the naturalisation
laws. All this will seem very drastic to those who
know nothing of the nature of German intrigue.
The Times (24th April, 1916) referring to Lord
Hardinge's return to England, said that in the early
period of the war more than one plot financed by
Germany was discovered just in the nick of time.
" from the Pacific
Gangs of conspirators arrived
coast of North America, found their way up-country,
and sought to foment rebellion. For some time the
Punjab was rife with outrage and murder." Later
reports gave details of the conspiracy cases at Lahore,
and the appeals to the Lieutenant-Governor of the
PEACEFUL PENETRATION AT WORK 71

Punjab against a number of death sentences.


German incitement to acts of violence was con-
clusively proved in several of these cases.
Sir John Prescott Hewett, an Indian official of

nearly forty years' experience, said that he felt very


"
strongly the necessity of an active campaign
throughout India against German trade." Natu-
ralised Germans appeared to be maintaining then-
trade connections, and goods manufactured in
*
Germany were still being imported."
Other parts of the Empire. A
striking instance
of German control of key-products comes from
another British possession in Asia. The main supply
of wolfram ore, from which tungsten is extracted,
isobtained in the Tavoy district in Lower Burma.
On the declaration of war was found that German
it

mines or residing in
agents, either actually at the
London, "regulated" the whole output and sent the
ore to Germany to be treated.
In March 1916 a special tribunal at Mandalay
"
tried seventeen Indians charged with conspiring
to wage war against the King and Emperor." The
prosecution was able to produce direct evidence
that German agents in America had actively
"
supported the Gadr," which has an organisation
1
Morning Post, 24th March, 1916. The same issue contains
a from " a correspondent well versed in the conditions of
letter
trade in India," who shows how a German firm, suddenly
"
transformed into an English one, with a naturalised German,
resident in London, at its head," was able to continue making
large purchases of manganese ore, after the outbreak of hos-
tilities.
72 PEACEFUL PENETRATION
there. Several witnesses stated that a scheme had
been elaborated for the invasion of Upper Burma
by a force to be collected in Yunnan and officered by
Germans.
At the time of the early victories in Belgium and
France the German element in Hongkong was
particularly active in displaying its sympathies.
Our reward for permitting a state of affairs under
which four (Chairman included) out of eleven
directors on the Board of the Hongkong and Shanghai
Bank were Germans, and three (Chairman included)
out of seven directors of the Hongkong and Wham-
poa Dock Company a corporation that controlled
interests of primary moment to Britain and her

navy. Mr. Frederick Palmer, the well-known


American correspondent, in a recent issue of
Collier's Weekly, says that he was in Hongkong at
the time of the Boer War and the British disaster
at Magersfontein. When the news arrived the
German clubs were soon ablaze with lights and the
event was celebrated in a full flow of champagne.
This is interesting read in conjunction with a state-
ment made some time previously by another Ameri-
can writer. Mr. Poultney Bigelow says that in his
travels in the East he met a young German who
announced that he was going to Hongkong to
settle down. Asked why he did not go to his own
colony, Kiao-Chow, he vigorously repudiated the
suggestion and declared that he was somebody
at Hongkong, but among the military at
PEACEFUL PENETRATION AT WORK 73

Kiao-Chow he was a mere nobody, in fact "a


civilian."
In Egypt German effort to incite natives to revolt
had been long planned and prepared. And behind
it all was the whole official influence of Germany.

Her diplomatic and consular representatives are


encouraged to work in secret to undermine the
authority of the Governments to which they are
accredited. It is the complementary side of Real-

politik. Baron Max von Oppenheim, who held the


rank of councillor to the German Agency hi Cairo,
was for long the organiser of Teutonic activity in

Egypt. From time to time he received marked


favour from the Kaiser. Like other distinguished
Germans, he visited Port Sudan in the course of his
propaganda. His work was ably seconded and
continued by Prinz Hatzfeldt, who became German
Agent and Consul General at Cairo in 1910. His
Oriental Secretary, Dr. Curt Priifer, was a scholar
and archaeologist. He was something more. He
cultivated the friendship of the Sheikh Shawash,
the notorious ringleader of every plot and scheme
directed against the Egyptian Government.
Whether Dr. gave the Sheikh instruction in
Priifer
the matter of making bombs or not, what admits
of no doubt or dispute is that he earnestly pro-
claimed Germany's sympathy with Mohammedanism
and Britain's intention to curtail the religious free-
dom of the followers of the true Prophet.
74 PEACEFUL PENETRATION

II. IN OTHER COUNTRIES


"
The United States. The hope of America is the
success of the Allies," says Mr. W. H. Skaggs in
German Conspiracies in America. ? For Why
decades not only the Germans at home and in the
United States, but thousands of Americans, have
pointed with pride to the part played by Germans
hi developing the Republic culturally and economi-

cally. The answer lies in a nutshell. The first


essential of national stability is undivided allegiance,
and in any community an element whatever its
superiority in some respects which owes a double
allegiance will be a source of weakness and dis-
integration. Deutschtum did not begin its pro-
paganda with the European war. It had been
going on in a general way for years, and for nearly
two decades has been assuming a more and more
acute anti-British form. The hundreds of German
societies in America which have long been devoted
to this propaganda were creating inevitably a
friction-surface between their adopted country and
the countries against which Germany was launching
her World-politics. Not long before the war I
read in the Berlin weekly newspaper, Das Neue
Deutschland, the report of a speech delivered by
Dr. Hexamer, president of the German- American
National Union, in which he stated that the whole
influence of the members, without exception, would
be exerted to counteract the growing friendship
PEACEFUL PENETRATION AT WORK 75

between Great Britain and the United States.


Another organisation which has been energetic
"
of late is The Teutonic Sons of America." In
March 1916 the National Council of this Order
"
resolved, that the Teutonic Sons of America will
offer to the United States army the services of five
trained soldiers of Teutonic origin, who have served
in the German army, for every recruit of English

origin."
The hundred American professors, authors,
five

artists, clergymen, and other prominent citizens,


who in April 1916 addressed a remarkable document,
assuring England of their moral support, to the
British people generally, contrasted the active
propaganda of Germans in the United States with
the apparent indifference of the Allies to American
"
public opinion. An active and sometimes in-
sidious German propaganda has been carried on in
the United States." But the United States has not
been exceptional in this respect. When the
European catastrophe came upon the world what
was the position in America ? In every town there
was at least one emissary of the German Government.
He sometimes contrived to remain in the background,
but he was spending German money with a lavish
hand. His usual method of procedure was to seek
out influential Germans whose Vaterlandsliebe was
much more fervent than their loyalty to the Republic,
and the important point for good Americans to
note is that he had no difficulty in finding such
76 PEACEFUL PENETRATION
agents. Their efforts were especially directed to
" "
what wascalled organising public opinion
through the Press. In some towns the German
consulates were active centres of this and similar

propaganda. What were the net results ? American


" "
opinion refused to be organised and some
journalists only redoubled their efforts to ferret out
German scheming and plotting in the States.
Among these was John Rathom, an Australian by
birth, the editor of The Providence Journal. Boy -Ed
and his accomplices were tracked to earth, and all
the devious and planful workings of American
Deutschtum were ruthlessly laid bare, so that even
the man in the street could no longer remain in the
dark.
But Germanism and Efficiency are ever behind
"
peaceful penetration." Early in March 1916
part of the Journal's building was destroyed by
explosion and Shortly afterwards Hans
fire.

Tauscher, the agent in the United States for Krupp,


was charged with having procured large quantities
of dynamite and other high explosives and sent his
accomplices to Niagara Falls to destroy the Welland
"
Canal. The man Hodson," whose name has
figured so largely in the American newspapers
recently, admitted to the American authorities
that he was in the employ of Germany. He is
charged, among other offences, with attempting to
blow up the steamship Matoppo.
The career of the notorious von Pap en is fresh in
PEACEFUL PENETRATION AT WORK 77

the public mind. American files of 21st April, 1916,


contain lengthy accounts of the seizure of documents
found on the premises in Wall Street, New York,
occupied by his assistant, von Igel. Herr von Igel
was the go-between in every one of Herr von
Papen's activities. As I wish to confine myself to
facts I omit reference to what these documents are
surmised by the American newspapers to contain.
The matter of importance is that consuls and similar
State-agents have lent their whole weight to much
of this incitement to revolution and violence, as well
as to the systematic forging of passports.
But the organisation of " the German vote " and
the German element in the United States for anti-
British purposes did not begin with the European
war. Erhaltung des Deutschtums was the rallying
cry among Germans in America as early as 1830.
It was the first article of faith with German
gymnastic clubs, schools, philharmonic societies,
and German- American organisation everywhere. 1
Some members of the Zentralbund of Philadelphia,
a particularly active centre of American Deutschtum,
in 1901 demanded the introduction of the German

language into all the public schools of America.


The whole propaganda, in fact, has been going on in a
general way for several decades, and began to as-
sume itsmore repulsive shapes about fifteen years

ago. Throughout this period a wave of pacificism


had swept over the United States, but as the present
1
Tonnelat, ISExpamion allemande hora d'Europe, pp. 31-33.
78 PEACEFUL PENETRATION
war has progressed this pacificism has given place
more and more to serious consideration of national
defence. Against whom ? The May 1916 files of the
New York Herald will supply the answer. No
well-informed American doubts that an organised
movement against the Republic and its forces would
have been put into operation immediately upon the
severance of relations with Germany. Numbers of
Germans in the United States had received orders
"
giving minutest details as to their conduct on
the day of publication of the recall of the German
Ambassador from Washington." No wonder
Figaro says that the French people would rather
" "
have two million barbares casques fighting in
"
their country than fifteen million Allemands
" " "
masques operating peacefully in it. The
French journal asks whether German effort to divert
America's policy from its normal course and dominate
her choice of rulers has blunted and darkened her
conscience. 1
The Germans are acutely conscious of their culture-
work in America and the latter 's debt to them They .

are doubtless actuated by pure principle, as they


understand the phrase. In the meantime it is being
proclaimed through the length and breadth of the
" "
States that the German- American vote is better

organised than ever, and will determine the Presi-


dential election in November.
" ' '
aux Etats-Unis d'Amerique," 8th
1
Le Gare a vous !

June, 1916 a scathing indictment of Deutschtum in the


United States.
PEACEFUL PENETRATION AT WORK 79

France. In Chapter II I dealt with Prussia's


methods of long preparation for military
secret
success in the countries where she intends to carry
on a campaign. Bitter experience brought that
lesson home to France with peculiarly vivid reality.
But she knows much of German methods of
also
economic conquest.
After the French defeat of 1871 the Treaty of
Versailles contained a clause (Article 11) giving
German products the same tariff as the most
favoured foreign nation. When France later raised
her protective duties to defend herself against the
German manufactures which began to inundate the
country, she was obliged at the same time to deal
a blow at Belgian trade. Much of Germany's
success during this decade was due to her close
imitation of French wares and French trade-marks.
On 23rd February, 1884, the French Court of Appeal
gave a decision condemning the practice, and by
virtue of this decision the Minister of Commerce
in 1886 addressed a circular to all Chambers of
Commerce declaring that foreign merchandise bear-
ing a French trade-mark might be seized at the
frontier by the Customs. Albert Sorel, writing in
1887, speaks again and again of the close imitation
of French articles by German manufacturers.
"
Germany is invading France a second time, by
commercial and, if the process continues,
infiltration,
the latter will not escape with an indemnity of five
milliards." 1 In the same year Lucien Nicot made
1
ISAllemagne actuelle, p. 17.
80 PEACEFUL PENETRATION
a pathetic appeal to his countrymen to wake up
to the danger threatening the country both by the
establishment of a well-organised system of espionage
and by the control of commerce and industry :

"
The present invasion of our country by men who
come from beyond the Rhine and settle here is
only the preparation for the other invasion with
which Germany threatens us." He showed by a
vast array of facts and figures how Germanisation
for political purposes was proceeding slowly, surely,
and relentlessly, and how the French people and
"
Government were aiding it by their criminal
" "
indifference and incurable unconcern." French
firms and businesses were Germanised, in some cases

completely acquired, on a definite plan. A single


German would obtain a post in a factory or ware-
house and be in regular communication with com-
rades at home, a second would obtain a post, then a
third, all of whom ingratiated themselves into the
goodwill of the proprietor or foreman. This was the
" "
group-system and the result was that in a few
years not one French artisan remained in the
establishment. 1 Also, thousands of Germans re-
gistered themselves as Swiss, Austrian or Belgian
subjects, and in some cases won sympathy by
declaring that they were Alsatians. Henri Andrillon
pointed out in 1909 that one of the supplements of
the Deutsche Export-Revue these are issued only
to German subscribers declared that, in order to
L'Allemagne d Paris (1887), pp. 161, 162.
1
PEACEFUL PENETRATION AT WORK 81

conquer a country economically it is necessary to


export into it men.
1
Maurice Schwob quotes the
following extracts from this German publication :

"
If one wishes to conquer a country economi-
cally, andfor all time, it is essential to begin with
the export of men." 2
"
Some countries ask to be conquered there are ;

others which we must conquer and there are ;

the appointed times for these conquests. As


regards the relations of German commerce to
3
France, these three conditions are realised now."

" "
Two prominent features of this export of men
were the group-system, to which I have referred,
and the system of subsidised agents. The latter
this was especially the case with clerks sometimes
worked for very low wages, receiving remittances
from associations in Germany which made a special
levy on their members for this purpose. Both
classes of exported men and this holds for England
and Italy as well as France sent reams of valuable
information to Germany, concerning customers,
business methods, strong and weak points of these
methods, and other items of interest. Later, these
German employees would resign, gradually and one
by one. They either returned to Germany or were
established by their masters in their adopted
1
L'Expansion de VAllemagne et la France, p. 15.
a
Le Danger allemand (1914), ii., p. 315.
3
/&., p. 320.
F
82 PEACEFUL PENETRATION
country in opposition to the old firm, probably under
an English, French, or Italian name. 1
Lucien Nicot speaks of the German imitation of
"
French wares as counterfeiting raised to the
eminence of a principle." Silks marked " soies
frangaises," madeLimbach, and Furth
at Crefeld, ;

" "
"rubans frangais manufactured at Barmen, draps
"
fran^ais at Elberfeld and Augsburg, have inun-
dated the Russian, Austrian, and South American
markets. 2 The fine Limoges porcelain was cun-
ningly imitated, and those many indefinable little

articles which we nicknacks, and on which


call

centuries of tradition had hitherto branded the word


" "
Paris with sufficient clearness, were made in
Elberfeld and other German towns and sold all over
France. It is of the first
importance to note that
" "
it is the German colony in Paris, not commercial
travellers, that is the active centre from which

spokes bearing German wares radiate all over the


country. Louis Bruneau says that it would be an
impossible task to attempt an enumeration of
German firms and companies which have established
branches in France, and carefully covered up their
origin, giving them at once the constitution and the
1
Le Danger allemand, passim. Cf Ezio M. Gray, L'Invasione
.

tedesca in Italia (1915), pp. 249-50, and Henri Hauser, Lea


Methodes allemandes d' expansion economique (1915), Part III,
Chapter II.
"
2
pp. 190, 191. See the whole of Chapter XIV,
I.e., La
contrefaqon allemande," for some striking instances of German
duplicity and dishonesty. Others will be found in Le Danger
allemand (Maurice Schwob) and Voyage en France (Ardouin-
Durnazet).
PEACEFUL PENETRATION AT WORK 83
"
qualification ofFrench joint-stock companies. The
infiltration goes on and laughs at the dues of the
custom-house. The soil is then prepared for new
conquests. It is an ever-growing army. When its
agents have completed their part, their place is taken
by the factories which, thus assured of a market,
"
install themselves finally on the national soil." It

appears certain that the Chemical Products Company


is trying to bring not only glues, gelatines, and

fertilisers, but all chemical products in France,


under one gigantic trugt." x In drugs and chemical
products all the large German companies were
represented in France, and in many branches of the
trade they held the market in the hollow of their
hands. For at least a decade the Rockling Com-
pany, the Aumetz-Friede Company and several
others, and Herr Thyssen, the German millionaire
steel and iron magnate, have been acquiring more
and more general control of the iron-ore deposits
in France.
The formation of companies, with good English,
French or Italian names but entirely under German
"
influence, is an outstanding characteristic of peace-
ful penetration." The Germans who held the
Australian metal market in their octopus grip sent
all the ore to a firm registered in London under a

fine old English name. In the same way the


Societe des Mines Nickeliferes, registered in France,
with head office in Paris, had obtained from the
1
L'Allemagne en France (1914), pp. 219-20, 339.
84 PEACEFUL PENETRATION
French Government extraordinary concessions for
the exploitation of the nickel mines in New Cale-
donia. Nickel is a metal of prime necessity for the

production of guns and armour-plate, and in heavy


forging generally. This Societe was proved to be
wholly German and to belong to the firm of Krupps.
1

In ISInvasione tedesca in Italia (pp. 176-9), Ezio


M. Gray gives a long list of firms and companies,
with resounding Italian names, which are almost
completely under German control.
The " patient, plodding Germans," who con-
" "
stituted the German colony in Paris, in 1902
decided to vary the monotony of commercial
infiltration, and they formed a branch of the
Flottenverein in the French capital. This or-

ganisation became a very energetic centre of


Parisian Deutschtum.
Nor have the " penetrators " neglected the French
colonies. At Tangier they sell vast quantities of
German wares as English. 2 Also, large quantities
of musical instruments, ironmongery and arms are
sent from Germany to England, where they undergo
a slight finishing touch, and are then exported to
"
the French colonies and elsewhere as English."
In the Ivory Coast from 1904 to 1913 the importa-
tion of French wares showed a decrease of 9 per cent.,
English a decrease of 2 per cent., and German an
increase of 6 per cent. M. Pierre Alype says that
1 A company and its activities will be
clear account of this
found du joug allemand (1915), pp. 309-10.
in Leon Daudet, Hors
2
Maurice Schwob, Le Danger allemand, p. 91.
PEACEFUL PENETRATION AT WORK 85

this state of affairs was largely the result of an


insidious but systematic propaganda among the
natives, which had for its aim the undermining of
their loyalty to France. The heads of the German
firms there were mostly retired army officers, at once

political propagandists and Secret Service agents. 1


Switzerland. There has not been much room for
doubt that the sympathy of a considerable section
of German-speaking Switzerland has lain with the
Central Powers. The Pan-Germanists have always
programme of Greater
included Switzerland in their
Germany. German houses and banks control the
market in several important lines, and the number
of German subjects in the republic is estimated at
300,000. Not long before the war Professor Schmidt,
of Zurich, said "If steps are not taken in time,
:

the absorption of Switzerland by Germany will


come about automatically." 2 A wholesale Ger-
manisation of French and Italian place names has
been going on recently of course insidiously.
Inquiries revealed that there were some half-dozen
Germans employed in the federal topographical
bureau, who had been devoting special attention to
the matter.
In 1846 List referred to Switzerland as an " ap-
"
purtenance of Germany, and so the Pan-Germanists
regard the republic The two German periodicals
still .

Heimdall and Deutsche Erde have a large circulation


1
La Provocation allemande aux Colonies, pp. 235-6.
8
Paul Vergnet, France in Danger, p. 130.
86 PEACEFUL PENETRATION
in Switzerland, Bohemia and Hungary. Their
main object is to spread the German language in

those parts of these countries where it is not already


spoken. In one of its early issues Heimdall an-
"
nounced its policy as the establishment of a
powerful Pan-Germanic Deutschland reuniting in
one fold the territories which have been separated
from the Empire but which formerly belonged to
it." Professor Heinrich Morf, of Zurich, gives some
interesting examples of Pan-Germanists' indignation
and invective at Swiss opposition to their efforts t j
"
strengthen a defective Deutschtum." They have
denounced, indeed, as vaterlandslos the most op-
probious of terms all those who have offered any
resistance to this movement. x
Spain. Here Germans have carried on work of
both a positive and a negative kind. They have
especially aimed at belittling French culture and
combating French influence. In vigorous tones of
righteous indignation what they call in Germany
heiliger Zorn they have denounced French in-
fidelity, and French treatment of the Church and
Christianity. They have won, or bought, a section
of the Press, which published periodically either
original articles or translations from the German
newspapers calculated to produce a favourable
2
impression of Deutschtum and Kultur. Paul
1
Deutsche und Romanen in der Schweiz (Zurich, 1901),
pp. 46-7.
2
This aspect of Germanism and its propaganda in Spain is
dealt with at some length by the Conde de Melgar in Germany
"
and Spain (1916), Chapter IV, The Carlo-Lutheran Press."
PEACEFUL PENETRATION AT WORK 87
"
Vergnet wrote in 1913 The Germanic Empire
:

is round about us, it encircles us everywhere.

Even Spain is invited to betray Latin solidarity in


the interests Deutschtum. There are Pan-
of
"
Germanists in Madrid (La France en Danger,
p. 220).
It is doubtful,however, whether any of these
" "
efforts have resulted in any deep cultural

impression on the Spanish mind. E. Gomez


Carrillo, writing in La Revue, 15th November, 1911
(p. 183 seq.), on "The struggle between French and
German influence in Spain," says that France has

given to Spanish literature, science and culture, more


than the rest of the world put together. He does
not think possible that any propaganda on the
it

part of Germany can make serious inroads into


French culture in Spain, or plant Kultur there.
"
Between the Spanish mentality and the Germanic
there exists a difference of such a kind that the whole
influence of either country upon the other can never
be anything but artificial."

Politically, the Spanish people and Government


have had beneath their eyes German activities in
the Spanish zone in Morocco. Ever since the
" "
settlement of the Morocco crisis Germany's
consular agents in the Spanish sphere of influence
have caused Madrid much concern by organising
a propaganda among the Berber chiefs, traditionally
hostile to France, and certain tribes of the Riff.
M. Angel Marvaud says that in the hour of her
88 PEACEFUL PENETRATION
defeat and national distress even " les Yankees "
were magnanimous enough to leave Spain the
Marianne Islands (except Guam) and the Carolines.
It was reserved for
" "
the Germanic vulture to
pounce upon another nation in the moment of
moral breakdown and almost crushing financial
strain. 1
But economically Germany's policy of commercial
penetration, compared with her past position there,
has made greater strides in Spain than in any other
country. In 1863 Spain imported from Prussia
and the three free ports, Bremen, Hamburg, and
Liibeck, goods to the value of one and a half million
pesetas, and from France goods to the value of
190 million pesetas. Immediately after the victory
of 1870-1 Germany began to oust France altogether
from the Spanish market. In 1875 there were only
eight or ten German commercial travellers in the
whole peninsula. Between 1892 and 1911 French
imports into Spain decreased by 67 million pesetas,
in the same period German imports increased by
"
103 millions. Germany with a skill not to be
gainsaid has enlisted her military prestige in the
service of her commercial interests." 2

Germany has pursued her usual methods of


commercial conquest. Thousands of articles, closely
imitating those of French manufacture, often bearing
brands and labels especially designed to deceive
1
a
UEapagne au XX* stecle (1913), p. 401.
16., pp. 397-8.
PEACEFUL PENETRATION AT WORK 89

purchasers into accepting them as French wares,


have been imported from Germany, and in some
districts have driven French goods completely off
the market. 1
Italy. Germany has contrived to reduce Italian
commerce and industry to such a state of dependence
upon herself that Italy was becoming in some
branches of industry helpless, if not parasitic. The
Giornale d' Italia (23rd March, 1916) declared that the
Banca Commerciale had for over twenty years
been an energetic agent in advancing not only
German commerce but Deutschtum in every form.
Germans and Austrians, naturalised Italians, were
well represented on the directorate, and systemati-

cally used their influence in the Italian commercial


and financial world to tighten Germany's political
hold upon Italy. The German banking system
abroad ever kept that end in view. Part of their
success was due to the long-credit system which

they organised so thoroughly that many manu-


facturers in Russia and Italy were little more than
their agents.
There has been a vast output of discussion in
England on what is called dumping. A certain
section of the Press has heaped ridicule without
stint upon those who foolishly imagine that some
countries will have to fight an economic war of
liberation after the war of armies in the field.
1
This subject was dealt with in considerable detail by M.
Maurice Schwob, Le Danger allemand, twenty years ago. See
pp. 52-3.
90 PEACEFUL PENETRATION
Italy has no illusion on the meaning of dumping.
The Organisationsgeist has been at work there to
oust rivals and competitors in the field of industry.
The most interesting example was the German
determination to kill the iron industry in Northern
Italy, which the Italian Government strove so
"
strenuously to foster. The mighty Stahlwercks-
"
verband
"
made herculean efforts to " control
these Italian foundries, that is to say, to make them
mere tools in the hands of the iron and steel magnates
of Diisseldorf. Foiled in this attempt, it has tried
to strangle them, as it has already strangled some
of those in Scotland and Staffordshire, by dumping
on a colossal scale.

Writing nearly six years ago from Berlin, I drew


attention to the vigorous protests of La Stampa
against such peaceful penetration and the machina-
tions of Pan-Germanists secretly backed by their
own Government. This journal and II Secolo have
for the past ten years never lost an opportunity of

warning Italy of the espionage of Austrians, and


the commercial undermining of Germans, most of
the latter naturalised. In May 1915 when Italy
declared war on Austria there were nearly a hundred
thousand German and Austrian subjects in Italy,
the vast majority of them carrying on business.
In March 1916 the Messaggero published an article
from the pen of the well-known Italian poli-

tician, Signor Ciraolo, warning the country that


a military triumph over Austria would leave
PEACEFUL PENETRATION AT WORK 91
" "
Italy still unredeemed if Germany were
allowed to maintain her control of industry and
commerce.
German commercial penetration has made gigantic
Rene Bazin wrote his "Italian sketches."
strides since
For him Italy was always the land of blue skies and
ancient monuments. In his travels through the
peninsula a quarter of a century ago he saw no
indication of any real Teutonic influence on the
and studies of the Italian people.
literature, ideas,
What he did see was an ever-increasing immigration
"
of German industriels
"
and " marchands." In
the large towns he found Germans everywhere,
and in some streets the names on the sign-boards
reminded one of the banks of the Spree. But out-
"
side thiscommercial exploitation German pene-
"
tration was a very insignificant matter " les
Allemands ne sont pas aimes en Italie." I
Between the date when those words were written
and the present time Germans have not succeeded
in making themselves liked any better in Italy, but
they have succeeded in reducing the country to a
state of financial and industrial dependence upon
"
themselves. The phenomenon of German pene-
tration in Italy is of a serious and impressive nature,
much more so than even the most clear-sighted
Italians imagine. The aim of Pan-Germanism is to
proceed from financial dominion and the gradual
destruction of our industries to our political servitude,
1
A VAventure. Croquis italiena (1891), pp. 245 and 250.
92 PEACEFUL PENETRATION
to domination, to annexation." 1
This statement
of Signor Giovanni Preziosi's will appear in no way
exaggerated to those who are abreast of the facts.
Italy has admitted within her walls the Trojan
horse and assuredly it was full of armed soldiery
with very formidable weapons, however well con-
cealed. This gradual closing-in upon Italian in-

dustry by naturalised Germans in close communica-


tion with Berlin, the control of the Press, the using
of German influence on the Banca Commerciale to
further German policy through the medium of
parliament and the electors they are all included
" 2
in la politica tedesca."
I know from my own experience the feeling
towards Germany as well as Austria, of Italian
residents in Vienna. With practical unanimity
they asserted that for over a decade the whole
policy ofPan-Germanism was driving Italy to be-
come more and more Slavophile. The intrigue of
the Teutonic Powers in the Balkans and Turkey,
their economic penetration there, the reaching out
for railway concessions, which would have ulti-

mately given them a clear passage to Salonika, meant


the extinction of Italian influence in Albania and
" "
the whole Adriatic. was a
Gross-Deutschland
" "
noble and worthy aspiration, a Greater Italy or
" "
a redeemed Italy was a danger to the world and
the harbinger of disaster to Europe. The whole
1
Germania alia conquista delV Italia (1915), p. 84.
8 "
Ib., pp. 66-7. See the whole section, II Cavallo di Troia,"
pp. 33-42.
PEACEFUL PENETRATION T WORK 93

situation is summed up most clearly and concisely


by M. Raphael-Georges Levy :
Germany was
paralysing Italy in a way which prevented the latter
from offering any opposition to Austrian expansion
"
in the interests of Teutonism. 1 A sigh of relief
was emitted by all Italians on learning that hos-
tilities had been opened against Austria." 2 We
may well accept that as a true message from Rome.
Italy yoked to Germany and Austria was not one
of the ironies but one of the humours of history.
Socialists of all grades and sections, and the un-
compromising Avanti, saw where continued neu-
trality would land Italy.
An Italy emerging from the present conflict with
increased power and prestige means the breaking
of the economic and financial bonds which Teutonism
has striven to rivet upon the country, but it means
something much more such a result will greatly
strengthen that good Europeanism which German
diplomacy helped to riddle and shatter.
Russia. Russia has but slowly come into the
purview of the average Englishman's real in-
quisitiveness. It has been a capital aim of German
policy and its promoters in the British Empire,
where political liberalism has been a real force, to

represent Russia as not so much semi-barbarous


as the natural enemy of freedom and small nation-
alities. How much of Russia's own system and
1 "
L'ltalie 6conomique," in Revue dee deux Mondes, 15th July,
1915, p. 321.
2
Times, 24th May, 1915.
94 PEACEFUL PENETRATION
internal disaffectionhave from time to time been
engineered from Berlin is known to very few
Englishmen. German influence hung over the
country like a ghoul. First, in the large towns and
manufacturing centres the Germans carried on their
policy of commercial infiltration. The Germans
have had much to say about their cultural work in
Russia. Had German science, plodding application,
and capital been organised solely to enrich Germany
at the expense of the material interests of the

country that gave them hospitality, it might have


"
been legitimate peaceful penetration." English
commercial travellers can hardly complain if they
are unable to hold their own against a German agent

living in Russia, speaking the language, well ac-


quainted with the technical science in which his
firm is knowing local wants and pre-
interested,
judices, and supported and seconded in all his
efforts by wide-awake consuls. But German agents
and agencies went far beyond that. They intrigued
for political purposes, now with the bureaucracy,
now with the Intelligentsia) now with any element
in thebourgeoisie that could be manipulated.
Second, in Russia's Baltic provinces half the
inhabitants are German or of German descent, and
some even of the latter speak only German. About
two and a half years ago, when the Russian Govern-
ment seemed on the point of seriously grappling
with this question, a section of the German Press
was greatly agitated over the changed attitude
PEACEFUL PENETRATION AT WORK 95

of the Russian authorities towards the German


"
schools. Our Kultur is in danger of extinction
at the hands of a semi- Asiatic Power," exclaimed
the Tageszeitung at the time. Not altogether
without reason did the Berlin Conservative organ
speak in this strain. In the stronghold of Teutonic
Kultur in European Russia the feudal caste spirit
and the unlovely class distinctions of the homeland
may be seen in full bloom. Paul Melon, who was a
student of Russia and knew the country well,
visited the German colonies hi various parts of the
Tsar's Empire in 1887 and found that the Teuton
had everywhere played the part of oppressor and
overlord. He pointed out that at the court of
Alexander II the Grand Duchess Constantin, the
Empress Marie, the Grand Duchess Helen and three
other prominent personages were all Germans,
and that German settlers everywhere enjoyed quite
"
exceptional privileges :
Up to these last years
exempt from military service, with their own laws
and schools, paying little or nothing in taxation,
these long-settled colonists had wound up by out-
stripping their Slav neighbours in well-being and
civilisation ;
but this did not inspire the least
feeling of obligation towards the foster-mother who
had treated them so generously. To-day Greater
Germany and Bismarck are as popular phrases in
these far confines of Europe as on the banks of the
Spree. It is from Berlin, not Petersburg, that these
Swabian mendicants, now grown to an important
96 PEACEFUL PENETRATION
group of three or four hundred thousand, accept
theirwatchword." 1 German oppression and the
memory of German oppression was a living thing
where the Teuton had established himself. It was
reflected popular sayings and popular songs.
in
To call a Livonian a Vahzech, " German," was like
calling an Alsatian a Schwob, and was regarded as
the greatest possible insult. 2
Paul Melon visited the German colonies in Russia
in 1887. Nearly twenty years later Victor Berard
wrote "In the Baltic provinces to the south of
:

Finland, German military and scientific influence


early obtained a hold which it has kept almost
undisputed to the present day. Here the Russian
could study and master the two forces which weigh
so heavilyon contemporary Europe, German mili-
tarism and German erudition." Of the Germanic
nobles who settled in the Russian Baltic provinces
and established Deutschtum there he tells us that
"
they have never lost touch with Germany to the
West," while they played at the same time a major
"
role in the command of the army and the ad-
ministration and the diplomacy of the Empire." 3
According to Sir Donald Mackenzie Wallace, even
the second generation of German colonists in Russia
"
would consider it an insult to be called Russians."

They rarely speak Russian well, preserve their own


"
customs, and never intermarry with those from
1
L'Allemagne chez elle et au dehors (1888), pp. 162-3.
2
I.e., p. 171.
3
The Russian Empire and Czarism (1905), pp. 61-2.
PEACEFUL PENETRATION AT WORK 97

whom they are separated by nationality and


religion."
x
In plain German, in Russia, as else-
where, they remain a Kulturvolk.
Another matter which the Czar's Government
was investigating with a view to amendment of the
law was the conditions of land tenure, especially
near the frontiers, of non-Russians. In these pro-
vinces not only did the Germans exert considerable
influence on the Petrograd Press, but many of them
had secured appointments in the Russian bureau-
cracy. Here in particular they have lost no
opportunity of using their position to advance
Deutschtum, politically and commercially.
On the outbreak of war hundreds of German-
Russians were found in Poland with carrier-pigeons
and wireless - telegraphy plant. It was found
necessary to send most of these and others the
very energetic Baron von Mirbach, of Dvinsk,
among the number to Siberia for the entire
duration of the war. It was also decided to deprive
several other high-placed Germans of their official

position, and the Government has further declared


that stringent regulations will be enforced against
the maintenance of German schools in the future.
The army of Germans in Russia, and German-
Russians, worked on lines similar to those followed
" "
elsewhere in regard to controlling certain kinds
of industries. M. Protopopov, Vice-President of the
Duma, speaking in Glasgow on 15th May, 1916,
1
Russia, pp. 253-4,
98 PEACEFUL PENETRATION
dwelt especially upon this aspect of Germany's
" " "
peaceful penetration in Russia The cutting
:

off of German supplies had had a serious, in some

departments a very serious, on Russian


effect

industries, including many which produce


of those
materials directly necessary for the army." At
"
the last annual meeting of the Coal and Iron
Producers of Southern Russia," the president,
"
M. Wilga, said that German commercial colonisa-
"
tion of Russia had affected not only the economic
life of the country, but the general conditions in

industry in a way which made Russia the victim


"
of foreign oppression." In The Times (Russian
Supplement, 27th May, 1916) the Petrograd
correspondent showed how the export of iron ore
from Russia had been organised by the Germans.
"
Thanks to this organisation, almost the total
export of iron ore from Russia, not only to Germany,
but to other countries, is monopolised by the
Germans."
In the present work I have frequently had to
refer to the part played by the German churches
abroad as agencies for the maintenance and spread
of Deutschtum, and even Pan-Germanism. Ac-
cording to Andre Barre the Germanising propaganda
of the Lutheran pastors in Livonia among the youth
of the province became so marked that in self-
defence the Russian Government was obliged to
forbid them entry to the schools, and even to whole

villages. The Lutheran Church throughout Russia


PEACEFUL PENETRATION AT WORK 99

has been one vast elaborate organisation, in the


closest communication with Berlin, and engaged as
much in advancing Pan- German as religious doc-
trine. 1
More than twenty years previously Paul
Melon had written of the Lutheran pastors and
"
churches in Russia : These apostles of the Gospel
and progress have nothing Christian about them
except the name. They carried with them into the
country a regime which was one of oppression and
2
cruelty."
Germans in Russia have published about fifty
newspapers in their own language. There were
German dailies in Libau, Lodz, Moscow, Odessa,

Petrograd and Reval. In Riga there were one


monthly, five weekly, and two daily publications
in the German language.

During my seven years in Germany I noted in a


thousand and one ways, from newspaper articles
and conversations with individuals prominent in the
commercial or intellectual world, that Germans
were inwardly apprehensive of two possibilities
crystallizing into certainties. First, the closer

organisation of Great Britain and her Dominions


was a source of constant dread. Second, the Russian
might shake himself free of the economic and " cul-
"
tural grip which the Teuton had fastened upon
him. This more than anything else urged Germany
to strike when she did. The Russian masses have
1
La Menace allemande (1907), pp. 146-6.
I.e., pp. 163 and 184.
100 PEACEFUL PENETRATION
felt the weight of that grip, they have long tasted

the fruits of Teutonic domination. That is why


the war is in a peculiarly real sense a people's war
as far as Russia is concerned.
Every scrap of scientific and Socialist literature
sold in Russia, distinguished from anarchist
as
or revolutionary books and pamphlets, has consisted
of translations from the productions of the German
Social Democrats, and the Russian workers were
passionately urged to become Internationalists by
men who showed, when the test came, that they
themselves were held hi bonds of the strictest
nationalism. There is abundant evidence, indeed,
that in the Socialist propaganda that has been
going on in the industrial centres since the famous
Ukase of 3rd November, 1905, concerning the free-
dom of the Press and the amnesty for political
working for the German Govern-
offenders, those
ment and Deutschtum have favoured this Socialist
campaign in Russia.
Holland. '\The Germanisation of Holland and
Belgium is proceeding apace. Much of Holland's
trade consists in the transit of goods to and from
Germany. Many of the shops are in the hands of
Germans, and German books and newspapers are
read perhaps as extensively as Dutch by the
educated classes. Also German schools for German
children are being established." I wrote those
words in Bremen in 1910. I pointed out how
anxiously Germans had for many decades fixed
PEACEFUL PENETRATION AT WORK 101

their gaze on the mouth of the river which was


"
always referred to as our German Rhine," how
intensely Germany coveted Holland's colonies,
and how she sought to strengthen her political
influence over the country by bringing Holland
into a German Customs Union. Die Post (3rd
January, 1913) said that Germany need not create
an artificial mouth of the Rhine. That already
"
existing is Germany's. Only, from the point of
view of constitutional law it does not belong to the
German Empire. Our problem, therefore, is not
one which concerns the engineer, but one which
concerns the aim to be by German
pursued
diplomats." It is
interesting to
compare this
statement with a remark made by the King of
Bavaria in June 1915 "A direct outlet from the
:

Rhine to the sea will be one of the fruits of the war."


The Pan-Germanists have for decades openly
declared that the possession of the Dutch coast
would give Germany just that strategic advantage
in the North Sea which she covets. The Dutch
know this. They also know that at any moment
in the future a Germany that emerged victorious
from the present struggle, might create an "in-
"
cident and use it as a pretext for protecting
German subjects or German interests, in other
words, for that absorption of Holland which has
always been an avowed article of faith with German

imperialists.
In Australia I frequently came across Dutch
102 PEACEFUL PENETRATION
traders from Java, Celebes, and other parts of the
East Indies, and nearly them, including those
all of

loudest in proclaiming some of the good qualities


of the Germans, seemed to distrust Germany as a
nation. Conversations with Dutchmen in Bremen
and Dortmund left the same impression upon me.
But though the popular feeling may be one of
dislike and distrust, there is a strong pro-German
element in the Dutch army and also in the Dutch
court. German agents have thoroughly organised
a Press campaign in favour of Deutschtum, with the
result that there is more popular ignorance of
German methods than there could be otherwise,
and perhaps more anti-British feeling in certain
quarters. The Telegraaf (3rd May, 1916) said that
the German Secret Service was being completely
reorganised in Holland. Germany has chosen
competent agents for the task von Papen and
Kuhlmann. The same journal gives some in-
teresting details of the staff organisation of the
Service in Rotterdam and other cities. In short,
a vast general scheme has been inaugurated both
for the creation of a favourable public opinion
towards Germany, and for the consolidation of the
existing German agencies of espionage and com-
mercial penetration.
Sweden. I have met a large number of Swedes
in Germany and I always tried to ascertain their
attitude towards Deutschtum. I could not trace
the anti-German feeling clearly noticeable in the
PEACEFUL PENETRATION AT WOPvK 103

Dutch. Alarge proportion of those with whom I


came in contact belonged to the professional class
a class which has been profoundly influenced from
Germany. Many Swedish doctors, clergymen, army
officers, and schoolmasters have graduated from,
or attended lectures in, the German universities.
There is not the shade of a doubt as to where the
sympathies of the court lie. Some of its members
have striven hard to bring Sweden definitely into
line with the cause of the Central Powers.
The only representative party censuring the
Government for its strict neutrality and clamouring
for Sweden's participation in the European conflict
are the Activists. However sincerely distrustful
members of this party all seem to have
of Russia, the
been under the influence of Kultur. In 1912 the
three Scandinavian nations signed an agreement
which laid down identical lines of neutrality for all
of them. In every meeting of the Riksdag since
then a number of members have manifested, often
in alarmist tones, a strong interest in national
defence. The army must be reorganised, and Sweden
put in a state of readiness to defend herself against
any violation of her territory or neutrality. By
whom ? Russia. Sven Hedin and Professor Steffen
were particularly energetic in keeping this view
before the public, and the German Press seconded
their efforts enthusiastically. Throughout 1913 a
consistent campaign, anti-Russian from the Swedish

standpoint, was carried on by the German news-


104 PEACEFUL PENETRATION
papers. The present agitation concerning Russia's
fortification of the Aland Islands is the culmination
of pro-German operations which have been at work
in Sweden for years.
Rumania. German agents have been busy for
years using the Rumanian Press to sow pro -German
feeling and distrust of Russia. La Politique, though
published in the French language, is saturated with
pro-German sentiment. Bucharest alone has five
German schools and one German high school. In
the rest of the country there are fourteen German
schools, and in each of the twelve Protestant
parishes there are German libraries. Seven or eight

years ago the German Government was able to

bring enough pressure to bear in the right quarter


to secure the introduction of the German language
as a compulsory subject into the curriculum of a
number of public schools.
Brazil. It is difficult to decide, on the evidence,
exactly what the spirit of the German colonists in
Brazil was in the early days of these settlements.
"
Some writers assert that they all formed closed
colonies," others that there was a readiness among
some to become absorbed into the Brazilian national
life. What is that for about a quarter
certain is

of a century German-Brazilians have become more


and more imbued with the spirit of imperial
Germanism, and have even gone so far as to resist
certain decrees and regulations of the Government
of the Republic. I remember meeting in Berlin
PEACEFUL PENETRATION AT WORK 105

during the first week of the war a young German-


Brazilian about sixteen years of age, born in the
State of Santa Catharina, who could not speak a
word and was rather proud of the
of Portuguese
fact. The general story is the same as in every
other country. The German churches, Catholic
and Protestant, the schools, in many cases under
teachers specially nominated by the German
Government, numerous well-organised clubs, and a
German Press, have all become increasingly ag-
gressive propagandists for about two decades.
How aggressive can be seen from the following
statement of the purpose and objects of the German
Mutual Protection Association, as set forth in its
own articles : "To protect its members
against the
abuse of power by the local authorities, and to pro-
vide a remedy for the imperfect administration of the
law. It is proposed that the association shall be
the focus of German influence in Brazil, and shall

help to cement the Germanic element now distributed


through the Republic, to foster a feeling of unity
among Germans, and to persuade them to co-
operate in asserting their just desires and protecting
their interests." l Behind all these activities stand
ever-watchful consuls and powerful commercial
houses. The animating them was expressed
spirit
by Carl Rathgen not quite twenty years ago "In :

1600 the world was divided between Spaniards and


"
1
F. W. Wile, German Colonisation in Brazil," Fortnightly
Review, January 1906, p. 134.
106 PEACEFUL PENETRATION
Portuguesetill the Netherlands, France, and, above

England, divided it anew. What has happened


all,

once may happen again." l Gustav Schmoller says


that Germany must never rest till she has twenty
or thirty millions of her own subjects settled in
Brazil, and that it does not matter whether they
form an independent State or not. " Without,
however, a connection whose stability is guaranteed
by warships without the possibility of forcible
German intervention there such a development is
2
endangered."
Germans have long looked to Brazil as the future
scene of their In 1849 a private
colonisation.
colonisation society was
formed in Hamburg
(Hamburger Kolonisationsverein), which purchased
a large extent of territory in Santa Catharina. Most
of this land still belongs to descendants of the
society's agents or members. 3 From that date
German settlement in Brazil has proceeded steadily.
Since the foundation of the German Empire and the
growth of the Greater Germany movement, the
German colonist here has become more and more
convinced that he is the advance guard of Kultur
and that the Brazilian is an altogether inferior
1
Kundig des englischen Handelsvertrags, 1897.
*
Handels- und Machtpolitik (Stuttgart), 1900; Fortnightly
Review, I.e., pp. 136-7.
8
Those who are interested in the earlier history of German
colonisation in Brazil will find the subject dealt with in J. J.
:

von Tschudi, Reisen durch Sudamerika (Leipzig, 1867), vol. iii;


Woldemar Schultz, Studien uber agrarische und physikaliache
Verhdltnisse in Sudbrasilien (Leipzig, 1865), pp. 17, 41 seq.,
77 ; Oscar Constatt, Brasilien : Land und Leute (Berlin, 1877),
Chapter XVI.
PEACEFUL PENETRATION AT WORK 107

creature. A German writer quoted by R. Gonnard


says that the Brazilian does not like the foreigner
and feels antipathy to the representatives of a nation
intellectually superior to his own. That is the stock
German explanation of all hostility to the Teuton
and his Kultur, but the same writer concludes in the
"
true Prussian spirit The economic conquest of
:

these lands by the West is already in progress.


Germany has taken the share in the work which
belongs to her. May she do the same in all South
l
America." Seiior Santiago Perez Triana, formerly
Minister for Colombia in London, who died in
England in May saw as clearly as any citizen
1916,
of Latin America what was menacing the sovereignty
and security of those South American States.
That is why he never lost an opportunity of urging
them not to regard the Monroe Doctrine as an
assumption of tutelage over them by the northern
republic. Just before his death he warned Pro-
German Spaniards and Brazilians that the triumph
of Germany's Weltpolitik would mean the fixing of
Prussianism in South America, the extinction of
democratic institutions, and the transference to the
continent of many of the conditions of European
militarism. That is the answer to those in England
and the United States who denounced the Monroe
"
doctrine as an obstacle to Germany's legitimate
"
expansion in South America. Had Germany been
allowed to expand in Brazil, had she been granted
1
L' Emigration europtene au 19* siecle (1906), p. 166.
108 PEACEFUL PENETRATION
concessions by ourselves in Africa or the Pacific,
had she been given a free hand in Morocco, the
" "
machine would have been strengthened and the
German world-mission simply brought a step nearer
accomplishment .

The commercial field was exploited on usual


lines. The whole of the monazite sands which
contained thorium, uranium, zirconia, and lan-
thanum metals used in the gas mantle of the Wels-
bach burner or for electrical purposes, are worked
by German companies to which sole rights have
been conceded. 1 At Santos and some other places
German firms had almost complete control of the
coffee market. M. Wiener, who was for some years
Consul-General for France in Brazil, and who had
an exceptional knowledge of the country, including
districts only slightly explored, said that shiploads
of wares, bearing French names and French labels,
arrived from Germany and were sold all over the
2
country as French. In many branches of trade
German goods have completely ousted French.
In 1886 there were nearly two hundred French firms
doing business in Bio Janeiro, in 1896 there were
sixty-five French firms there.
1
Valuable deposits of monazite sand are also found in Travan-
core, a protected State in Southern India. These were com-
pletely under German control. The sand was obtained at 4 a
ton and shipped to Germany. Only a limited quantity was
allowed to be sold to manufacturers in Great Britain, who were
charged 36 a ton for it.
2
In one of his reports M. Wiener refers to German silk goods
" m
sold comme sp6cialit6s lyonnaises, avec les ernes lisieres,
et le meme pliage." Maurice Schwob, Le Danger allemand, p. 154.
PEACEFUL PENETRATION AT WORK 109

The Germans in Parana published two daily


journals and one weekly. The port was visited
four times monthly by a Hamburg line of steamers.
Public men in Brazil now see the meaning for the
republic, nationally, of German colonisation and
"
the export of men." They are face to face with a
grave problem, with a system. That system is made
up of State enterprise, led by energetic consuls,
State subsidies, and naturalised aliens of very
doubtful loyalty.
Mexico. Whether the recent civil disorder in
Mexico was stirred up by German agents or not
it is in accordance with German policy to instigate
both to divert attention and to
strife of this kind,

embarrass opponents. The New York Times (18th


April, 1916) published a letter from its correspondent
with the American forces in Mexico, who, without
charged the German consul in Parral
qualification,
with inciting the civil population to attack the
American troops.
Mr. Gerard, the American Ambassador in Berlin,
during the early weeks of the war, when there was
a great outcry in the German Press against American
firms supplying the Allies with ammunition, quietly
reminded Government and people that two years
previously Germany had sent vast quantities of
ammunition to Mexico for use against the United
States. The ships which had carried it were, in
August and September 1914, enjoying the safe
protection of American harbours.
110 PEACEFUL PENETRATION
For many years the Director of Schools and
Education was a German, and he consistently
combined the advance of German commerce and
political Deutschtum with his educational work.
The German educational press, and newspapers
generally, expressed their high appreciation of his
services to the Fatherland.
China. In Mexico, China, Persia, and wherever
the political structure shows a tendency to topple
over, the German's tactics are widely different
from those adopted in a progressive and politically
stable community like Australia. This is the
outstanding feature of Deutschtum and penetration.
In passing from country to country we see it working
under many guises. In Russia it makes the utmost
possible use of the bureaucracy, in Spain it seeks
influence through the channels of the Catholic
Church, in Australia it is represented on Political
Labour Leagues, in Mexico it plays off one
revolutionary leader or disaffected party against
another.
Whether Yuan-shi-kai fell a victim to Kultur
and Csesarism or not is by no means clear. But for
about twenty years the agents of Deutschtum have
been very active, and at all times they have had
political In 1900 Professor Hermann
ends in view.
Schumacher, of Kiel, said that Germany should
extend her economic influence in China and use this
influence for strengthening herself politically in the
Far East. In the intervening years Germans have
PEACEFUL PENETRATION AT WORK 111

improved upon that advice. They have not only


occupied Shantung and Kiao-Chow, but they have
been entrusted to a considerable extent with the
reorganisation of the army and with the super-
intendence of fortifications. Li Hung Chang's chief
henchman was a German, and so was a prominent
adviser in the railway and mining departments.

Germany has carried Kultur to every part of the

tottering empire. The Deutsche Zeitung, which is


sent gratis to every prominent official and public man
in China, publishes every week fantastic accounts
of German victories, and extracts from German
classical writers and articles showing German
knowledge what China's great philosophers have
of

thought and said. Turkish and Persian agents


have been enlisted in the cause and they go from
place to place contrasting German progress with
British decadence. The activities of Herr von
Hientz are fairly well known to those abreast of
Germanism and its He acquired a
movements.
journal of considerable influence in the Chinese
world, Te-Khona-Bao, of Mukden. At great ex-
pense he sent out into every district agents charged
with the work of propagating Deutschtum. His
right-hand man was von Voretz, formerly of Hong-
kong, who hastravelled in Shanghai, the Japanese

military zone near Tsing-Tao, and parts of Central


China, as M. Nelsen, Swedish consul. Finally, the
Government of the Chinese Republic found itself

obliged formally to protest against the propaganda


112 PEACEFUL PENETRATION
of Herr von Heintz, and to declare that he was
exceeding his duty, causing disaffection among the
Chinese people, and acting in contravention of the
elementary courtesies of international relations.
German firms in China were not content with
merely pushing their own trade, they were promoting
political Deutschtum and sapping British influence.
When the proclamation was issued in Great Britain,
about the middle of 1915, forbidding trade with
German and Austrian firms in China, dozens of the
latter were obliged to put up their shutters In 1 90 1 .

Edouard Lockroy said that in China, Germany had


become, in the short space of twenty years, a more
than redoubtable competitor even for England,
maintaining between India, Siam, China, and Japan,
a fleet of more than six hundred vessels engaged in
the coastal trade, and fixing her hold more and more
"
firmly upon the yellow world. N'est-ce pas la
un exemple a mediter de politique coloniale et
" l
commerciale ?

No
nation knows better than Japan where the
danger to China has lain for more than a decade.
Germany's agents have devoted special efforts to
create discord between Tokio and Peking and have
used the newspapers which they controlled mainly
to this end and to magnifying Deutschtum and its
invincibility. Japan is watching the present contest
with an intentness which signifies something deeper
than her nominal adherence to the side of the Allies.
1
La Marine allemande, pp. 251-2,
PEACEFUL PENETRATION AT WORK 113

Turkey and Islam. In no part of the world has


Germany striven harder to establish her Teutonising

policy than in the Ottoman Empire. The Kaiser's


sweeping claim to bring all Islam under the sphere of
his protection put forward not very long after the
incidents of Adana was only one factor in a vast

campaign.
Admiral von Sanders and Baron von Wangenheim
were among the foremost missionaries of Deutschtum
in Turkey. The latter especially, as German Am-
bassador, cultivated the goodwill of Enver, the
Minister for War. While von der Goltz was re-
organising the army, the Deutsche Bank was
acquiring a firm financial grip on Constantinople
and getting more and more control of commerce
and industry, German schools under the direction
of the Deutseher Schulverein were spreading Kultur,
and, throughout, German trade was making
enormous Dr. Rohrbach, Dr. Jackh, Pro-
strides.
fessor Mangelsdorf, and others who had devoted

years of attention to Turkey, said that they would


see the fruits of their work when Armageddon came.
That event has arrived, but only part of the fruit
has been harvested to date.
In 1903 there were fifty -three German churches,
schools, hospices, orphanages, and cemeteries in
Turkey. The Biirgerschule alone in Pera then had
a roll of over 600 pupils. In November 1902 the
Deutsche Zeitung reviewed Germany's position in the
Ottoman Empire and declared her ultimate aims.
114 PEACEFUL PENETRATION
She would buy up the quays and establish tariffs

that would put an end to all non-German com-


petition, and bring all the railways into one great
German trust. " Turkey will become a German
x
province." The years intervening between these
dates and the Armageddon to which German ex-
pansionists openly admit that they were looking
forward, have committed Turkey too deeply to
" "
the new course mapped out by the Central
Powers to make her welcome the final overthrow
of Germany and Germanism. It is interesting to

note, however, that, as far as one can gauge the


state of feeling, there has been some reaction against
"
German arrogance and the procedure of the mailed
fist." Germans have pursued a policy of ruthless
Deutschtum, multiplying parties and playing one
off against the other. Only these internal feuds
have enabled the wire-pullers to steer clear of a
serious crisis, but they have been powerless to stay
the hand of the assassin.
Since the war the Germans in Spain have been
proclaiming the Kaiser's deep sympathy with the
Roman Catholic Church and his attachment to the
Pope. Karl Neufeld has been proclaiming to the
Arabs the Kaiser's great solicitude for their religion.
The German War-Lord's highest aim, indeed, has
always been to deliver the faithful of the Prophet.
Their Christian oppressors had too long evaded

1
R. Gonnard, L' Emigration europtenne au 19' sitcle (1906),

p. 157.
PEACEFUL PENETRATION AT WORK 115

their Nemesis. With a perfect command of Arabic


Neufeld was able to make his way about the sacred
citiesMedina and Mecca, where, by a display of
perfervid enthusiasm and copious quotations from
the Koran, he convinced a large number of Moham-
medans of Germany's sympathy with their religion,
and contrasted therewith England's traditional
hostility to their faith.
Nor have the Germans been by any means idle
in Afghanistan, though their efforts so far have
failed to make any impression on Hubibullah Khan,
the present Ameer. A deliberate attempt, however,
was made by German agents to seduce him from
his faithfulness. Lord Hardinge, in an interview
granted to the London correspondent of the New
"
York Times in May 1916, said that German and
Turkish emissaries went to Kabul with letters from
the Kaiser urging the Ameer to declare a holy war,
but in spite of the intrigues of the pro-German
faction at Kabul he steadfastly refused."
Germans had also arrived in Kabul and elsewhere
some of them from America with abundant
supplies of money and reams of inflammatory
literature. Their aim was to raise the holy war and
"
incite Indians to revolt. They made these wild
hillmen believe that the Kaiser was a Mahometan and
the divinely appointed protector of Islam." l
For some years before the war British residents
1
Sir Francis Younghusband, quoted by the Manchester
Guardian, 17th June, 1916.
116 PEACEFUL PENETRATION
in Ispahan noted subtle influences at work under-
mining England's prestige in Persia. Those
influences all sprang from the one great central
fountain-head. In consequence of the situation
occasioned by this propaganda the Imperial Bank
of Persia was obliged for a time to close its branches
at Ramadan, Sultanabad, and Kermanshah.
Teheran also was seething with unrest. After the
Russian occupation of Kermanshah these branches
re-opened and affairs throughout the country rapidly
improved. The notorious Count von Karitz, military
attache at the German legation in Teheran, who had
posed as a fervid friend of the true faith, committed
suicide.He was Prince Reuss's right-hand man,
"
and they had both worked energetically for the
cause."
In Siam, Batavia, and the Philippine Islands the
story is much the same. Die Rundschau is a German
weekly paper published at Bangkok, and the offices

of the publication are the rallying-point of the


propagandists of Deutschtum. At Manila also these
agents have their organ of public opinion, The
German- American, published in English.
A well-organised crusade has been carried on
throughout the Mohammedan world. In the first

number ofDer Islam, published at Strassburg,


Martin Hartmann reviewed Germany's attitude to
the Mohammedan religion and the countries where
it prevailed. This article was reproduced and
spread broadcast among Mohammedans in Turkey,
PEACEFUL PENETRATION AT WORK 117

India, and In Madagascar German agents


Africa.
have for years been actively at work among the
large Mohammedan population of the island. In
Morocco, Tangier, and throughout Northern Africa,
a pamphlet was distributed declaring that France
persecuted every religion, and would apply her
traditional methods to Mohammedanism as soon
as she felt herself strong enough. The Osmanischer
Lloyd, the official organ of the German embassy in
Constantinople, has long been an important in-
strument of Deutschtum for Mussulmans every-
where. Since the war it has proclaimed how the
mosques in every corner of the world have been
filled with the faithful praying Allah to continue
Germany's brilliant successes, and to grant victory
"
to Hadji Mohammed Ghilioum." The Arab
journal published in the same city, Soehre, has been
as virulently pro-German for some years, and has
held up Great Britain as the traditional arch-enemy
of Islam. In Northern and Central Cameroon,
immediately on the outbreak of war, letters in Arabic
were sent to all the important chiefs, and notices
were posted outside the mosques calling upon the
faithful to aid the Kaiser, the friend of Turkey and
the Sultan, and to fight the British and French who
intended to change the Mohammedan religion.
CHAPTER IV
GERMAN COLONISATION
I. SHORT SURVEY OF GERMAN COLONIAL EFFORT
"Without an active colonial policy the sure and peaceful
development of Germany in the future is unthinkable."
Dr. Solf, German Imperial Secretary for the Colonies, 17th May,
1916.

WHEN Dr. Solf used these words, Germany was in


the throes of a world-conflict for which her own
surrender to Prussianism was mainly responsible.
Here was a country whose economic expansion had
proceeded by leaps and bounds under the political
hegemony of a state in which a vast element of
feudal privilege remained untouched. In 1778
Justus Moser attempted to answer the question,
"
Are the German cities now to unite again for
commercial pursuits with the sanction of their
"
territorial princes ?He began by pointing out
that at all
times, from the very first moment when
the German national spirit would fain have risen
to something higher down to the hour in which he
was writing, a hostile genius had been contending
against it.The territorial princes, jealous of their
privileges, had withheld their support from com-
"
merce. Had fate reversed German history in this
118
GERMAN COLONISATION 119

respect, we should have had at Ratisbon a House


of Peers of no political significance, and the federated
cities and communes would, as a united body,

administer the laws which their forefathers had


imposed upon the world after the most violent
struggle against the territorial princes. Not Lord
Clive but a Councillor from Hamburg would be
x
issuing decrees on the banks of the Ganges."
There isa world of meaning in that passage to those
who can trace in the present European conflict the
antagonism of two irreconcilable moral principles.
More than a century after Justus Moser wrote,
Paul Melon saw in Germany's enormous emigration,
especially in the period 1871-1883, causes which lay
deeper than economic pressure. He declared that
this emigration was to a much greater extent
"
symptomatic of a moral cramping, un malaise
moral," arising out of the military service and a
constricted political life. 2
In the evolution of Prussia from a number of
detached territories, some them of
sandy, marshy,
or otherwise sterile, to a kingdom dominating
central Europe and threatening to dominate the
world, we trace the instincts, forces, and national
characteristics, good and bad, which are at work
to-day. And throughout, from the first chapter
of the record to the last yet written, methods and
" "
influences akin to peaceful penetration in the

1
Patriotische Phantasien (Berlin, 1778), L, p. 258.
2
UAllemagne chez die et au dehors (1888), p. 216.
120 PEACEFUL PENETRATION
Prussian sense, have played a major part. This is
equally true of German colonisation beyond Europe.
The word colonisation is not strictly applicable
to Germany's efforts to extend her dominion.
With England, imperialism has not been a philosophy
or even a faith, but a growth, not always quite so
unconscious as some writers declare, nevertheless a
from life's experiences and
free venture reaching out
hence transplanting beyond the seas features that
were destined to persist. With Germany, " the
"
new course has been one result of the military
successes of 1864, 1866 and 1870, a mighty streaming
of national sentiment through all sections of the

people and a vivid regret that they counted for so


little in the outside world compared with their

predominant position in Europe. Friedrich Fabri,

writing in 1889, declared that the acquisition of


colonies was a life-and-death question for Germany,
and that every nation faced by such questions was
justified using not only its influence but its
in
material force to maintain itself. The whole sentence
is pregnant with Deutschtum and its philosophy
"
of colonisation." Clausewitz said that war was
"
a continuation of policy by other means," and
Germany's military experiences in the latter half
of the nineteenth century taught her to look upon
"
war as a comparatively easy form of such con-
tinuation of policy." When Clause witz wrote those
words Australia and Canada were already well
settled colonies.
GERMAN COLONISATION 121

Such associations as Germanism Abroad, The


Colonial Society, Society for German Schools Abroad,
to say nothing of the Pan-German League and the
Navy League, and the various periodicals and courses
of lectures on this subject, were symptoms of the
new ambition. I well remember visiting the
Kolonialmuseum at Moabit, Berlin, in the early

part of 1911. The vestibule was full of models of


Germany's latest
Dreadnoughts. It was
striking
evidence of the extent to which the demand for
"
a place in the sun " had crystallised into a definite
policy and of the popular conviction that therewas a
very real connection between that demand and a
huge navy. But it is not colonisation. It is a
mere effort to extend beyond the confines of Europe
the Prussian State-system built up, in the main,
by a body of autocrats and supported with some
fervour by the people, first,because they are by
nature docile, and, second, because the world-
mission of Deutschtum opens to them vistas which
flatter the national vanity. I was in Bremen some
years ago when the Barbarossa left for Australia
with a number of Germans who intended to settle
there in various parts. The German Government
had implored them to go to South West Africa
instead of Australia, and remain true to the Father-
land, but not one of them changed his mind. They
much preferred a country where there are no class
distinctions and no militarism to a colony in which
all the features of Prussianism are reproduced.
122 PEACEFUL PENETRATION
Yet the German newspapers and leading public men
have for years consistently proclaimed that the
British colonies were longing to break away from
the Motherland, and Germans already settled in
our Dominions have plotted and intrigued against
the Government and people that gave them a home
and freedom.
A survey of the history of German colonial
brief

enterprise since the foundation of the Empire will


illustrate and confirm these statements. It will
show the difference between colonisation in the
British sense of the natural extension of a culture

type, and the artificial Kolonialpolitik of Germany.


It was in 1811 that William Charles Wentworth,
a native of Norfolk Island, first crossed the Blue
Mountains in Australia, in those days truly a terra
incognita. Seven years later an association was
formed in Germany, not to found new colonies, but
to retain in allegiance, or at any rate sympathy,
with the Fatherland, those Germans who had
already settled abroad. The German Association
in New York was formed in 1832, the Mainzer
Fiirstenverein ten years later, and various colonisa-
tion societies between 1843 and 1849, all of which
at one time aspired to establish a German State in
America. Dr. Ernst Francke says that the German
Government was too weak to carry out any of these
programmes.
1
What the German Government is
too weak to carry out German individuals will not
1
Weltpolitik und Sozialreform (1900), pp. 89-91.
GERMAN COLONISATION 123

be likely to accomplish. The adventurers and


pioneers of British colonisation often asked for

nothing more from their Government than to be left

severely alone. Germans have settled in the


United States, the British Empire, Brazil and the
Argentine, in fairly large numbers. Since the Naval
Construction Act the German Government and
Press have been proclaiming the necessity of pro-
tecting Germans in every part of the world. Were
the Germans in these countries maltreated in any
way when Germany had no navy ? The Colonial
Society and the Navy League, with branches all over
Germany, have done much to stir the people to a
Hurrahpatriotismus, but have done nothing to
reduce the blighting pressure of officialdom in the
colonies Germany already had and thus give free
play to their natural development as trade-colonies,
even if they were not all fit for white settlement.
Germans complained that Great Britain had left
them nothing but a few Handelskolonien, but the
" "
vast sum Germany spent on these colonies was
mainly intended to strengthen them as military
" "
outposts for the inevitable reckoning with
England. From the time when Charles V gave a
charter to a German company to exploit Venezuela
in 1528, and from the effort in the age of the great
Elector to found a colony on the African Gold
Coast, down to the nineteenth-century acquisitions
and China, German colonial
in Africa, the Pacific,

enterprise has been one unqualified failure. And


124 PEACEFUL PENETRATION
every one of these latter territories accrued to
Germany through fraud or intrigue. Even such
successes as she had had in Africa had been almost
entirely due to powerful companies, when not at-
tributable directly to the State, and hardly at all
to private enterprise and adventure, in any fair

interpretation of the words. Bismarck gave his


views on colonies and colonisation at considerable
length in the Reichstag on 26th June, 1884. The
proposals of certain colonial enthusiasts, he said,
would bring upon Germany the ill-will of other
"
States, and result in Nasenstuber, raps on the
nose," for which she would have no means of re-
"
taliation. Our not strong enough for it."
fleet is

He also insisted
upon the close connection between
" "
colonial policy and a strong mercantile marine
subsidised by the State. In the same year Herr
Patzig declared that vaterldndischer Stolz, "pride in
the Fatherland," was prompting Germans to display
so much enthusiasm in the colonial question. That
is no assured basis for successful colonisation and
may easily be a disturbing factor in the economy
of the world. Besides, that vaterldndischer Stolz
has clashed, in regard to colonies, with Germany's
own material interests in a way that has from time
to time changed the mood In 1905
of the country.
and 1906 receipts and expenditure on this head
showed an outlay so disproportionate to returns
that there was a wild outcry all over Germany and
in the Reichstag. When the latter was dissolved in
GERMAN COLONISATION 125

December 1906, Dernburg, the Colonial Minister,


appeared in person in many electorates, and the
"
Kolonialgesellschaft," whose membership jumped
up to about 100,000, organised a veritable crusade
in every part of the country. In a word, German
Kolonialpolitik was little more than an element
in thePan-German movement, and this movement
"
was not colonial," it was rather military. The
Portuguese have been despised as mere Latins, and
there has been much speculation in Berlin on the
destiny of the Dutch colonies both are the natural

heritage of Germany. But both have shown a


" "
sense of colonising, an aptitude for pioneer work,

foreign to the German nature. The clamour about


" "
Germany's legitimate desire to expand and it
has been loud in England at times as well as in
Germany can only be based on the right of
Prussianised Germany to extend her military sway,
and if Italy and every other country have a similar
right, only a periodical re-distribution of territory
will save the world from perpetual strife.
How often I heard and read in Germany that
we were " sea-robbers," the " hereditary enemy " of
every nation that tried to expand Here is the
!

evidence of facts not theories of our antagonism


to German expansion in various parts of the
world.
New Guinea. I was very intimate with Mr.
Theodore Be van, who explored the southern shore of
New Guinea in 1884 and 1885, and discovered the
126 PEACEFUL PENETRATION
Purari River. He gave me much interesting informa-
tion about this part of the island, the natives, the
future place of New Guinea in Australian policy, and he
always declared that every young Australian should
be taught to look upon New Guinea as his natural
frontier on the north. How did Germany get a
footing there ? As early as 1793 the East India
Company annexed New Guinea, and British troops
actually occupied for a period Manasvari, an island
in Geelvink Bay. Private colonising efforts had
been organised from Sydney in 1864, and in 1867
an association was formed to colonise the eastern
shores of the island. A few years later Captain

Moresby hoisted the Union Jack on islands at the


south-eastern extremity. The British Government
immediately repudiated the act. On 27th July,
"
1874, Sir Henry Parkes The importance of
said :

New Guinea to the English Empire now rapidly


forming in this part of the world cannot be over-
estimated." In 1883 Mr. Chester, the resident
magistrate at Thursday Island, acting under in-
from the Premier of Queensland, formally
structions
annexed the island to Great Britain. Sir Henry
Parkes, though not in office at the time, expressed
his strong approval. Long before any of these
dates (except 1793) English missionaries had been
in New Guinea, and according to William Westgarth
"
they were making substantial way with increasing
numbers of the native children." x Now note what
1
Half a Century of Australian Progress (1889), p. 351.
GERMAN COLONISATION 127

happens. In 1884 the German New Guinea Com-


pany is formed and in the name of the German
Government lays claim to the whole of the north-
east and the adjoining islands. 1 And the British
Government admitted the claim. Sir Henry Parkes
"
said : We all know what has occurred. We know
the tortuous ways in which persons who have had
to negotiate with England have acted." West-

garth was very friendly to Germany and the German


people, he was a member of one of the English
radical and free-trade associations, he encouraged
German emigration to Australia, one of his books
was translated into German, he said of the Germans,
"
They are almost our second selves. We shall
never be at war with Germany." His opinion on
Germany's conduct in the New Guinea question is
worth quoting :

"
Regarding the past of New Guinea, Germany
has been simply looking on (if indeed she has
shown interest even to that extent) while we have
been long and continuously preparing a harvest.
But, as soon as the harvest is ripe, she steps in
and helps
herself to the half of it. Not only does
Germany seem wholly unconscious of anything
unreasonable in this procedure but possibly to
infuse some humour into the case she even

1
The Neu-Guinea Kompagnie was not constituted till 26th
May, 1884, and obtained its official charter on 17th May of the
following year.
128 PEACEFUL PENETRATION
assumes to be in a pet at the Australian colonists
1
for raising the question."

Friedrich Fabri in Bedarf Deutschland der


Colonien ? Germans in
(1879, pp. 57, 58) says that
Australia were urging their Government to annex
the Fiji Islands, when England stepped in and
forestalled her, and that in the 'forties Germans in
Australia asked Prussia to consider the feasibility
of colonising New Zealand. What are the facts
in regardto these territories ? Wesleyan mis-
sionaries were actively at work in the Fijis in 1835,
and the British Government annexed the islands in
1874, after repeated requests to do so from the king
and chiefs of the group. The first British mis-
sionaries settled in the North Island of New Zealand
in 1814, and the Treaty of Waitangi was concluded
in February 1840. In 1846 two years before
" "
Germany's revolution representative institu-
tions were introduced into the colony, and six years
later the New Zealand Constitution Act established
full responsible government.
Samoa. But if Germany's devious ways and turns
were well illustrated in the claim to,and the an-
nexation of, the north-eastern portion of New
Guinea, what shall we say of her proceedings in
regard to Samoa ? Germanica fides must surely

"
1
76., p. 354, and p. 356 he speaks of our purloined New
Guinea." Sir Henry Parkes knew Westgarth personally, and
had a high opinion of both the man and his writings on Australia.
GERMAN COLONISATION 129

have even herself here. Both the United


satisfied
States and Great Britain had concluded treaties,
conferring large trading rights, with the native
chiefs, before German enterprise was known in any
of these islands. Nevertheless, in 1879 Germany
was permitted to join in a convention with these two
Powers, under which the trading rights conferred
were to be maintained without violating the existing
sovereignty of the islands. The agreement was
formally renewed in 1884. From this date to the
establishment of German supremacy the islands
were seething with unrest. Before the end of this
same year the German Consul-General at Apia made
an agreement with Malietoa, the King of Samoa,
by which the latter conceded to Germany supreme
control of the whole group. Shortly afterwards
stillin 1884 Malietoa wrote to Queen Victoria
and declared that he had been coerced into signing
the treaty with theGerman Consul-General. A little
later Germany declared war on Malietoa, captured
him and transported him to Hamburg, and in
" "
carrying on the war she demanded " belligerent
"
rights from Great Britain and the United States.
She thereupon installed in regal state the pretender,
Tamesese, and an utterly impossible bill of costs
was presented to the latter, with a threat to annex
Samoa he did not pay. After some years of
if

unsettled government Great Britain, despite the


appealing protests of Australia and New Zealand,
finally withdrew all claims in Samoa, and in con-
130 PEACEFUL PENETRATION
sideration Germany withdrew all claims to the
Friendly Islands, where Bligh of the Bounty and her
romantic career had been in 1789, where we
established a mission in 1796, had maintained a
continuous mission since 1826, and from 1875 had
carried on a regular trade between Sydney and
Tonga Here,
! as in the case of New Guinea,
Germany posed and the
as the injured innocent,
debates in the Reichstag pressed Government and
people to learn from their Samoan experiences what
scant justice they would receive in the family of
nations, unless they were strong enough to assert
their rights by force.
I was in Christ church, New Zealand, at the time
" "
of Germany's application of her colonising
principles to Samoa and the Pacific, and have a
vivid recollection of the feeling which they aroused.
Indignation ? New Zealanders and Australians
felt that they had been betrayed. An American
writer has just said, most expressively, that the
acquisition by Germany of a place in the sun would
only mean that she could cast a greater shadow
over the world. Lord Fitzmaurice, in his Life of
Lord Granville l us in regard to the New Guinea
tells
"
question, that Gladstone saw that a choice had

1
II, p. 430. Gladstone saw clearly enough through Bis-
marck's stupendous duplicity and intrigue but he nevertheless
;
"
threw the whole weight of his influence into the scale of an
agreement with concessions to Germany." Since then we have
" "
also heard much of concessions to Germany. How much of
Germany's goodwill have they gained for us ?
GERMAN COLONISATION 131

to be made, and recognised that the continued


hostility of Germany was a greater danger than the
irritation of the Australian colonies about New
Guinea and the Pacific Islands." Gladstone had
quite made up his mind on that point. The English
professor who once proposed that half of Australia
should be given to Germany as a solatium also
doubtless had a simple mind and a high sense of
duty. But more than half of Australia is able to
help Great Britain in 1916.
Africa. After England's generous treatment of
the Transvaal Republic in 1881 events in Egypt,
culminating in Tel-el-Kebir, occupied her full

attention. Germany meantime had been


in the

growing more aggressive politically and commercially,


she looked more and more upon Africa as the field
of her legitimate exploitation, she took the Trans-
vaal, the Orange Free State, and all Boer South
Africa, under her protecting wing. The Cape Dutch
at this time, like the Flemings in 1916, were a kindred
race, and besides Germany was the natural heir to
Holland's colonial empire, and this included South
Africa.
Mr. Evans Lewin gives a most interesting account
of earlyGerman efforts to expand in South Africa,
and shows how clearly Sir Bartle Frere saw through
German designs and German quotes
intrigue. He
the following illuminating passage from an article
written by Ernst von Weber, one of Germany's
earlier colonial enthusiasts ;
132 PEACEFUL PENETRATION
"
A
constant mass immigration of Germans
would gradually bring about a decided numerical
preponderance of Germans over the Dutch popu-
lation, and of itself would by degrees effect the
Germanisation of the country in a peaceful

Herr von Weber goes on to say that he looked


" "
forward to future dominion over the country
and the " foundation of a German- African Empire "
"
by means of the acquisition of Delagoa Bay and the
subsequent continual influx of German immigrants
to the Transvaal." *
The whole history of German " colonisation "
in Africa reflects German national character and
Prussia's historic methods of expansion. In the
early 'eighties Great Britain was embarrassed with
Irish troubles at home, was she
in Africa not only

feeling keenly the weight of her imperial burden hi


the north and the south, with Egypt and the Sudan
Madhists on the one hand and the Transvaal Boers
on the other, claiming a larger share of her attention,
but in West Africa an acute dispute with France was
pending settlement. A Prussianised Germany well
knows when to choose the moment to strike. Almost
simultaneously she announced to Great Britain
and the world that she had annexed four large slices
of the dark continent and the north-east of New
Guinea. What were these territories and on what
1
The Germans in Africa (1915), pp. 85-6.
GERMAN COLONISATION 133

did Germany base her right to annex them ? In


South West Africa Great Britain had occupied
Walfisch Bay and the islands along the coast as
early as 1878. Germany proclaimed her sovereignty
over the whole coast, except Walfisch Bay, in 1884,
on the strength of a concession of a small strip on
the bay of Angra Pequena, which native chiefs had
granted to the German trader Liideritz and to the
German " missionary," Pastor Biittner. A good
instance of the difference between German mis-
sionaries and our own. The latter have generally
been neglected by the British Government, often
at loggerheads with it as well as with traders. In
the same year 1884 Togoland was declared to be
under German protection on the strength of a
treaty with the native king, the ulterior boundaries
of our adjoining Gold Coast Colony being somewhat
indefinite. A few days after this proclamation
Germany annexed the Cameroons. Here we have
an arresting instance of the manner in which we
" "
have acted the part of dog in the manger and
"
thwarted Germany at every step." The English
Baptists had had a continuous mission station in the
territory since 1858, British influence had been
paramount with the natives since Sir Richard
Burton explored the district in 1862, and they had
repeatedly asked the British Government to take
them under its protection. Shortly afterwards
" "
we are still in 1884 German colonisers directed
their attention to the east coast, and obtained
134 PEACEFUL PENETRATION
concessions from the Sultan of Zanzibar, which they
interpreted to include the whole hinterland to
Victoria Nyanza and Uganda, bordering upon
" "
Equatorial Egypt. The Germans first leased
a strip of coast from the Sultan, later they con-
cluded an agreement with Great Britain defining
spheres of influence and delimiting boundaries, then
they declared that this agreement excluded the
Sultan from the mainland. Zanzibar had for years
been under the nominal protection of England, in
1873 the Sultan had agreed with us not to extend
the slave traffic and had guaranteed better treatment
to existing slaves, and we constantly brought
pressure to bear in this direction between that date
and the final emancipation of all slaves in Zanzibar.
The island of Zanzibar was formally placed under
British protection in 1886, yet four years later for
" "
concessions here on Germany's part we ceded
1
the island of Heligoland ! This roused a violent
storm of indignation throughout Germany, and very
largely the incident formed the pretext for the
"
creation of the Allgemeiner deutscher Verband,"
"
which afterwards changed its title to Alldeutscher
Verband," an organisation whose activities are now
fairly well known even to some Englishmen. Having

1
Jean Darcy, La Conqu&te de VAfrique (1900), p. 260, says
that the treaty of 1890 was a flagrant violation of French rights,
because in 1862 England and France had jointly guaranteed the
independence of the Sultan of Zanzibar. But none of his
arguments affect what is stated above as far as the Anglo
-

German side of this question is concerned.


GERMAN COLONISATION 135

thus acquired East Africa, Germany persistently


refused a strip of the hinterland for an all-British
railway from the Cape to Cairo, though such an
enterprise would have assisted materially in the
development of her own colonies.
German imperialists and travellers like Barth
"
openly proclaimed that the future Greater
"
Germany was to be established in Africa. This
open proclamation was the least objectionable of
Germany's methods. How was Germany to secure
this object ? Morocco with its advance guard and
agents provocateurs is fresh in the English mind, but
letus look back to an earlier period in the history of
Germany's colonisation. In the 'eighties Germany
cultivated assiduously the friendship of the Trans-
vaal Boers. That they were British subjects at the
time of the trek, that they were under British
suzerainty and debarred from concluding agree-
ments with foreign Powers without Britain's con-
"
sent this was a scrap of paper." In 1884
Germany intrigued with them to annex St. Lucia
Bay and establish themselves near Port Durban,
on a position which had been ceded to Britain in
1844, and this just after we had spent an enormous
sum in treasure and sacrificed thousands of lives to
overcome the Zulus. Throughout this period
Germans contrived to be largely represented in
Kruger's Civil Service, and they consistently
stimulated both the Government and the people
to withhold civil rights from British subjects, and
136 PEACEFUL PENETRATION
to make it difficult for them to obtain even common
justice.
Kiao-Chow. We now reach a chapter in the
" "
history of German colonisation to which no
German historian will ever be able to do justice.
The Pan- German League had been agitating for a
coaling station in China, and had definitely men-
tioned Kiao-Chow as the most acceptable some years
before Germany's actual occupation of the territory.
In 1895 and 1896 the League was particularly active
"
in its campaign Deutschland in China voran " !

(" Germany to the fore in China ") In 1897 two


!

German missionaries were murdered in Shantung.


Mr. Poultney Bigelow, an American who has
travelled extensively in this part of the world,
tells us that the two priests had ventured into a
localitywhere missionaries were particularly re-
1
quested not to penetrate. China immediately
made every reparation possible, executed the
murderers, paid an indemnity, and agreed to build a
Christian church. 2 Within a fortnight of the
murder, however, Admiral Diedrichs arrived with
three cruisers and landed troops in the bay. The
local Chinese garrison thought they had come to

parade and welcomed them with open arms, where-


upon it was summoned to fight or surrender. It
surrendered. This was the beginning of German
"
occupation of Kiao-Chow, one of the most im-

1
The Children of the Nations, p. 118.
2
Dr. Michaelis, Was iat Kiautschou wert ? (1898), p. 5.
GERMAN COLONISATION 137

portant acts in the history of contemporary Ger-


many, which secured for us a place in the sun in the
Far East, on the shores of the Pacific Ocean, which
have a great future before them." 1 On receipt
of the news of the assassination the Kaiser, without
even awaiting full details of what had happened,
delivered himself of one of his characteristically
pompous speeches. The most lamentable catas-
trophes, he declared, sometimes produce favourable
"
results. Providence has willed that the necessity
of avenging the massacre of our missionaries should
lead to our acquisition of a commercial site of the
first rank."

II. AN ESTIMATE OF THE GERMAN AS COLONIST


It has been often said that Germany appeared
too late in the field as a united nation to take part
in the colonising policy which enabled others to
divide the world between them. It is idle to
speculate and discuss whether, had world-history
taken a different course, Germany might have had
colonies which might have become great daughter
states, which might have enabled Germany to
spread Kultur over the world. The Germans have
shown little aptitude for pioneer colonisation, and
the colonies they did acquire they had by no means
made the most of. They complain that all territory
fit for white settlement had been snapped up by
Great Britain, and that only Handelskolonien, trade
1
Biilow, Imperial Germany, p. 95.
138 PEACEFUL PENETRATION
colonies, were left to them.
Dr. Stockmann, a
German official, has addressed to his
recently
"
countrymen an appeal under the title, Can we
"
give up our colonies ? in which he points with
pride to Germany's commercial exploitation of her
African and Pacific territories. We learn that
German South West Africa exported to Germany in

1913, 32 million marks' worth of diamonds, copper


and other minerals, that the imports of cotton from
East Africa and Togoland showed a continuous
increase for a long period of years, and that in 1913
East Africa supplied Germany with about two -thirds
of all the hemp imported. Nevertheless, Togoland
was the only colony self-supporting in any intelligible
sense of the word, and in South West Africa, a large

part of which is fit for white settlement, the total


European population, including the military and
it was not all German was only 14,816 after thirty
years of Germany's sovereignty, during which time
she had continuously proclaimed her need for
colonies for her surplus millions.
Max Sering 1 complains of England and her
colonial policy, not that she has colonised badly,
but that she has established her culture type over
the world to the exclusion of other types. The
statement is true. Bureaucratic formalism and
ceaseless strife with native races have dogged every
step of Germany's efforts to administer territories or
establish colonies beyond Europe. Many of the
1
Handela- und Machtpolitik (1900), vol. i.
GERMAN COLONISATION 139

Boers who South West Africa in 1902,


settled in

just after the war, were glad to return to their old


homes after a very short stay, and the Germans
themselves admit that they gave as their chief
"
reason that there was too much damned govern-
ment under the Germans." Professor Bonn, of
Munich, said that the Germans had no genius for
the work of colonisation, and he especially de-
nounced their red-tape methods and official routine
in Africa. Mr. A. P. Calvert, in The German
African Empire (1916) says that German South
West Africa has been " burdened with more official
ordinances and regulations than would be required
to run an Empire."
Friedrich Fabri in Funf Jahre deutscher Kolonial-
politik (1889) admits that the Germans have had
incessant difficulties with the natives in all parts
of Africa, and that in 1885 and previously Maharero,
the Chief in South West Africa, wanted to come under
British suzerainty. He adds that English " In-
"
triguenspiel was behind this request, but does not
supply the evidence of this. Time and time again
since Fabri's book was written Vorwdrts has pro-
tested against the treatment of the natives in South
West Africa, and particularly against the punish-
ment of death for theft. In this colony Germany
had trouble from the first to the last year of her
occupation. The most important outbreaks were
Hendrik Witboi 1893, Hottentots and Hereros
1896, Hereros 1907. On the last occasion Great
140 PEACEFUL PENETRATION
Britain helped Germany by permitting the Cape
Police to move from their border. When the
British troops invaded the colony, after the outbreak
of the present war, the natives gladly gave in-
formation to them concerning the position of German
forces, where water was obtainable, cattle and other

supplies, andin every case the information was


"
found to be accurate. Their one fear was lest
we should allow them to fall once more into the
hands of the Germans." 1
Wherever we turn the story is the same. A
writer in Blackwood's Magazine (April 1916, p. 561)

speaking of the occupation by the British of the


"
island of Mafia(German East Africa) says The :

Indian shopkeepers and also many of the Swahelis


were arrayed in spotless white garments as a tribute
to the occasion, for they were honestly glad of the
change of Government." Mr. Alfred Wiggles worth,
in an article entitled " Thirty Years of German
Rule in East Africa," which was singularly free from
"
anti-German sentiment, says Germans lack the
:

happy knack of winning the sympathy of natives,


and the tendency has been for these to gravitate
to British areas, thus denoting an allegiance which
"
should facilitate a change of flag (Contemporary
Review, April 1916, p. 478).
"
1
R. C. Hawkin, South Africa and Her German Neighbour,"
Quarterly Review, January 1916, p. 106.
The ability of British colonists to establish friendly relations
with native races is in no way affected by the Opium War, to
which Germans are so fond of referring. That was an immoral
act of State policy.
GERMAN COLONISATION 141

Dr. Walmsley, Bishop of Sierra Leone, writing


in East and West (April 1916, p. 122), a missionary

publication not noted for over-statement or Chau-


vinist leanings, declares that the natives in West
Africa have always felt that there was no bond of
"
sympathy between them and the Germans : Some-
how a radical difference between a typical
there is

Englishman and typical German in the way in


which they regard a native. On the West Coast
the natives have never suffered such treatment as
have their brothers in German South West Africa,
but they know of what happened there."
The native* troops operating with the British in
Cameroon behaved throughout with a loyalty and
devotion that left nothing to be desired, their

conduct being in marked contrast with that of


German native troops. The behaviour of the
Germans incampaign is described by the
this
"
Daily News (llth May, 1916) as bad, and in many
"
cases atrocious." There were many instances
of non-combatant inhabitants being mutilated in
the most revolting fashion. In one case a German
white man was seen by a British officer deliberately
cutting the throats of wounded native troops." In
this very colony the German Government organised,
between 1891 and 1903, twenty-nine punitive
expeditions to suppress native risings.
Lieutenant -Colonel S. M. Pritchard, first British
Administrator in the newly conquered territory
(South West Africa) reported on llth May, 1916 :
142 PEACEFUL PENETRATION
"
Inquiries he had made confirmed the reports of
the barbarous treatment of the natives (including
women and children) captured during the Herero
Rebellion. It had been estimated that the popula-
tion had been reduced by between 30,000 and
40,000 as the result of casualties during the re-
bellion, and of these atrocities." He adds that for
the most trivial offences employers used to send
the offenders either to the Native Commissioner or
to the nearest police post to receive twenty-five
lashes. Especially interesting is his description
Ovamboland, where the Germans had
of his visit to
never dared to venture from fear of the natives.
The Ovambos displayed the most friendly attitude,
and the Chief, Martin, expressed his intense hate
of the Germans. The word " Englishman " had
long been in the vocabulary of the Ovambos, with
whom it was equivalent to the colloquial expression
" "
white man among ourselves. General Leutwein,
who was Governor of the colony, wrote in 1906 that
Kambonde, one of the chiefs of this tribe, replying
to a friendly communication in which ths Governor

regretted his inability to visit him, said that he


never, wanted to Governor or any other
see the

German, because they came with fair words on their


lips and then wanted to seize the country. General
Leutwein admits that for prudential reasons he
had never sent soldiers to the Ovambo district. 1
Throughout the war there has been the most
1
Elf Jahre Gouverneur in Deutsch Sudwestafrika, pp. 172 seq.
GERMAN COLONISATION 143

marked contrast between the attitudes of native


races to Briton and German. The Governor of
British East Africa officially reported April in
1916 that since the outbreak of hostilities the Massai
and other native tribes had presented vast numbers
of cattle and sheep for the British troops. These
gifts, the Governor reported, had been quite
spontaneous. The loyalty of the Massai and their
willingness to assist the Government had materially
assisted military operations in the country near the
German border.
Let us take the testimony of a French authority
on colonial questions. Ernest Tonnelat, who is no
Germanophobe and finds much to admire in Ger-

many's colonising efforts, writing in 1908 said that


the natives of South West Africa could not fail to
compare the German police regulations and their
severity with the off-hand indulgence of the British
"
in Cape Colony. They will be tempted to cross
the boundary the exodus in fact has already begun
:

and it will be difficult to arrest it." *


Nor does the cause of natives' dislike lie in any
cryptic or insoluble psychology in themselves or in
the Germans. They cannot grasp the thousand
and one smaller regulations in which the Prussian
official mind delights, nor do they appreciate Kultur
" "
applied per medium of the mailed fist to enforce
those regulations. The following statement dated
26th January, 1916, by a member of the Nigerian
1
IS Expansion allemande hors d''Europe, p. 277.
144 PEACEFUL PENETRATION
forces who was
serving as intelligence officer with
the column operating in the Northern and Central
Cameroon under Brigadier- General Cunliffe, is from
the official reports issued by the Colonial Office :

"
Any natives who showed any sympathy with the
Allied forces, and many of those who did not, were

promptly murdered. Sex or age was no protection.


Carriers who were slow or weak were brutally beaten
or shot."
Robert Louis Stevenson loved Samoa and the
islanders and they in turn idolised him. In A
Footnote to History, published in 1892, a book whose
circulation, even in English, was, and is, prohibited
inGermany, he reviews all the elements of discord
and trouble in the group since 1883. He says
"
(p. 28) that the true centre of trouble, the head of
the boil of which Samoa languishes, is the German
"
firm." The firm, with the indomitable Weber
at its head and the consulate at its back there has
been the chief enemy of Samoa. ... I shall have
to as I proceed, of villages shelled on very
tell,

trifling grounds by Germans. ...


I shall have to
tell how the Germans landed and shed blood at

Fangalii. ... I shall have to tell how the Germans


"
bludgeoned Malietoa with a sudden call for money
(pp. 38, 39). Those who are interested in the
" "
history of frightf ulness will find Chapter XI,
"
Laupepa and Mataafa," pathetic reading. It is a
"
review of two years of blundering, bullying, and
failure in a little isle of the Pacific, of natives, not
GERMAN COLONISATION 145

hostile, not warlike, but amenable to civilisation,"


hiding from the modern Huns, and crouching away
at the very sight of them like hunted fauns. The
"
haunting fear of Germany," the ever-present
possibility of "a German vengeance,"
stroke of
"
and always deplorable when dis-
duplicities,
covered, never more fatal than with men imperfectly
"
civilised who would grudge Germany her place
"
in the sun, indeed on the equator, if her legitimate
" 1
desire to expand called for it ?

About twelve months before the present war


Rupert Brooke was in Samoa. He says that the
Germans have governed the island well. " And
yet the Samoans do not like tjie Germans." He
"
was often asked by the natives When will :

Peritania (Britain) fight Germany, and send her


" 2
away from Samoa ? Everyone that has visited
the group has returned with a similar story.
The German view of all colonising nations, their
" "
activities sphere, and their
in this rights of

possession, throws a flood of light upon the workings


of the German mind and on Germany's political

philosophy. We have already seen something of


the German attitute towards Britain and her
1
Since writing the above I have just read that the Resident
Commissioner in the Gilbert and Ellice groups reports officially
that the natives have throughout the war displayed a " magni-
"
ficent spirit of loyalty to the British cause," and that in some
of the islands the entire population wished to leave for the seat
of war." They had already collected 3000 for the Prince of
Wales's Relief Fund. How many Englishmen know exactly
where these islands are ?
2
Letters from America (1916), p. 164.
146 PEACEFUL PENETRATION
colonial policy. The English, the sea-robbers who
had blocked Germany at every step, would find
their colonies declaring their independence, if not
"
hostility, at the first favourable opportunity. In
Hongkong I am somebody in Kiao-Chow I am a
common In Hongkong German interests
civilian.
are respected, and Germans have a voice." There
is much significance in this remark of a German
fellow-passenger to Mr. Poultney Bigelow, when the
latter twitted him with going to a British colony
instead of settling among his own people. I have
already spoken of German representation on the
directorates of banks and other corporations here,
" "
and the conduct of the German colony at the
time of the Boer War. But there was something
in theremark that was characteristic and afforded
more than an indication of German methods of
requiting our complacent generosity.
Other colonising nations shared the censure
passed by the land of Kultur. At the time of the
"
Morocco crisis the Kolnische Zeitung said that the
Gallic cock had too much sand in Africa," and Die
Post that German policy aimed at the early acquisi-
tion of French, Spanish, Portuguese, and Belgian

possessions in Africa, and the ultimate acquisition


of the continent. 1 Do German results, then,
compare so favourably with French as to warrant
these ambitions ? M. R. Gonnard, writing in 1906,

1
Pierre Alype, La Provocation allemande aux colonies, 1916,
pp. 74-80, 101.
GERMAN COLONISATION 147

said that all that Germany had accomplished in


Africa in the way of bona fide settlement was
"
practically In an equal, or less, space of
nil.

time, France has done more in the way of settlement


in Madagascar alone than Germany in her three
African colonies put together. Real German coloni-
sation has always taken place, and is still taking

place, on territories which do not stand under the


*
crown of the Hohenzollerns." According to M.
Alype the total commerce of German Africa in 1902
was below that of the island of Zanzibar. 2 The main
contentions of these two French writers are in-
disputable. In commerce and colonisation Germany
has never been a pioneer, she has come in to reap
where others have sown. The German has never,
in the vigorous words of his
greatest English
"
admirer, ventured forth founding new habitable
colonies in the immeasurable circumambient realms
of Nothingness and Night." Professor Haeckel,
the apostle of monism and anti-Christianity, has
recently been giving an American journal the benefit
of his views on Germany's colonial ambitions.
When Germanism and German expansion are at
stake, freethinkers and socialists are quite ready to
step into line with Prussia's other forces the
mobilised professors and the State church. Haeckel
declares that England wanted empire for lust of

gold and greed, Germany simply because she is over-

1
IS Emigration europdenne au XIX e
siecle, pp. 144-5.
2
I.e., p. 60.
148 PEACEFUL PENETRATION
crowded. Why then did she clamour for Portuguese
Angola and make no real effort to colonise South
West Africa ? When she received her " com-
"
pensation for Morocco why did she move heaven
and earth to delimit the boundary in a way that
would make easy a military attack on French
1
territory ?

Paul Samassa wrote in the Tdgliche Rundschau in


1913 that Portugal had become a nation of mulattoes,
neither able to keep her colonies nor deserving to

keep them, and that if England desired Germany's


friendship she must give practical expression to the
desire by expediting the transfer to Germany of
"
colonies belonging to a State in process of de-
composition." Exactly a year before the great

conflagration Dr. Singlemann declared that three


million Germans could find a home in the 30,000

square kilometres in the south of Angola. Why


could they not find a home in German South West
Africa,where the total white population in 1912
including a military garrison was only
large
14,816? As early as 22nd August, 1884, C. A.
Patzig, one of Germany's greatest colonial enthu-
siasts at the time, declared that Portugal's whole
claims to her 1,805,000 square kilometres in Africa
"
were only papierne Rechte."
The same journal, the Tdgliche Rundschau (15th
January, 1913), said that the Republic of Liberia
was a very rich country, with great possibilities
1
Alype, pp. 75-6.
GERMAN COLONISATION 149

ahead of it under a progressive colonial policy.


Germany was the Power to take this work in hand
and inaugurate such a policy.
In the history of Germany since the foundation of
the Empire Kolonialpolitik makes up the largest
pages. It has been a turbulent and aggressive
Politikon the whole. General causes, especially
economic expansion, and tendencies not peculiar to
any single country, "have no doubt contributed
much to its development ;
but one traces throughout
all the essential features which the new Germany
took over from the old Prussia.

III. RESPONSE or GERMANS SETTLED ABROAD TO


THE CALL OF DEUTSCHTUM
"
I have already spoken of the Society to Maintain
"
Germanism Abroad and kindred associations in
Germany which have for some years been extremely
active, and have done much to hold Germans
abroad to the German tradition and to keep them in
groups attached to Deutschtum. Their aim was well
expressed by Professor Zahn, of Berlin University,
"
in 1905 We should sedulously maintain the ties
:

between our countrymen settled abroad and their


mother-country. To this end it is advisable to
strengthen systematically their national power of
resistance, their Germanism, to cultivate carefully
among them the German language, the German
German customs, German nationality, and
spirit,
to reinforce through diplomatic, consular, and
150 PEACEFUL PENETRATION
maritime channels, every effort to protect German
interests in foreign countries." He went on to say
that those who assisted in this work of consolidation
would increase the prosperity of the motherland
and advance Germany's policy of cultural and
"
economic domination."
It could not be denied by any observer who had
mixed with the Germans in Australia, knew much
of their clubs, schools, churches and newspapers,
that for about twenty years something of the national
self-glorification, which has assumed such fantastic
shapes in the Fatherland, had begun to show with
greater and greater distinctness above the surface
in the Commonwealth. The Germans settled in
Australia clerks, mercantile employees, waiters,
and others form fairly large groups in Sydney,
Melbourne, Brisbane and Adelaide, and have
numerous clubs. Of recent years the farmers in the
country districts of Queensland and South Australia
have been more in touch with their city compatriots
than in the days of yore. In Sydney and Adelaide
the Germans had their own newspapers, and in some
places their own schools. Latterly, national holi-
days, such as the Kaiser's birthday and the an-
niversary of the foundation of the German Empire,
had been made the occasion for a considerable
display of Vaterlandsliebe. All of them are loud in
their protestations of loyalty to Australia. They
emphasise their devotion to Australian interests,
but in a way which leaves no room for doubt in the
GERMAN COLONISATION 151

minds of those who know the German character,


that they wish to exploit local national feeling in
their own interests, which, being interpreted, means,
along anti- British lines.

What is true of the Germans in Australia holds of


Germans abroad everywhere. At one time they
themselves insisted upon their contentment, loyalty,
and liberty under the freest constitution in the world.
Why then demand their own schools, why had their
clubs developed into centres not only of nationalism
but of anti-British agitation ? To answer these and
similar questions it is essential to bear in mind

that, in the first place, the appeals put forward


from Germany, the incessant lament over the number
of Germans lost to the flag, absorbed in the United
States or the world- wide Britannic Empire, were not,
and could hardly be, void of all effect on Germans
settled abroad. A good many times within the past
ten years I have expressed myself very strongly on
the positive dangers of this ebullient nationalism,
and from English and Australian people I nearly
always received the same answer it was not
natural to the German, it was a passing caprice
which would give place to his solid and simple
qualities with time and the growth of democracy
at home. I never accepted this view, personally.
In the second place, a large proportion of the Ger-
mans who emigrated during the early period of

political unrest and economic poverty were poor or


disaffected. This is true of the vast majority of the
152 PEACEFUL PENETRATION
2,267,000 Germans who emigrated to the United
States alone between 1850 and 1870. But since
the foundation of the Empire commercial exploiters
and advance agents of industrial magnates, and men
who have grown up in a morbidly national at-

mosphere, have constituted the bulk of the emigrants.


In the third place, the attitude of the German,
above all other nationalities, would be widely
different towards a Fatherland politically and econo-
"
mically strong, standing at the head of European
"
Kultur," and towards a geographical expression."
But he is in all essentials deutsch. Baron von
Hiibner says that after studying the German in
various parts of the globe he came to the conclusion
that in spite of all outward changes, language,
"
customs, new conditions in all that affects cast
of mind and character he remains a German." 1
The national life covers so many by-ways and
stretches out into so many lines of sentiment that
it isa waste of energy to look for theories to account
for what is called the changed attitude of the German
abroad towards the land of his birth or of his fathers.
One saw very plainly at the time of the Boer War
that thousands of Germans living and prospering
under British rule were quite ready to jubilate with
the Germans at home over any serious blow to
British prestige. And here was not
possible to
it

put forward the plea that the outburst of offensive


Deutschtum manifested on this occasion was the
1
Through the British Empire, II, p. 361.
GERMAN COLONISATION 153

product of Kaiserism or Junkerdom. It was the


appearance on the surface of characteristics that
the German brought with him.
In Australia and New Zealand if anywhere in the

world, the people, including the Germans settled


there, live under free democratic government.
But Germans were ready at all times within the past
fifteen years to support the Fatherland's scheme
of expansion, and this whether it embittered Anglo -
German relations or not. It matters little to
Australia or other parts of the Empire whether
Prussian militarism has been imposed by a caste
upon a people to whom, as a whole, it is alien, or
whether the new ambitions and the avowed ideas
of world-policy appeal to Germans of all parties and
in all countries. The central fact for the young
Dominions is that they are being undermined by
subtle forms of Deutschtum, and they cannot remain
indifferent to this menace pending the development
of what is called German democracy.
I have seen much of the Germans living in different

parts of Australia and New Zealand, and I have no


wish to misrepresent them. In the cities they are
generally found as waiters, hair-dressers, or clerks,
in the country districts as farmers. The " frugal
and industrious German " was rather the tiller of the
soil than the city dweller, but both classes had some

of the marks of good citizenship which their com-

patriots at home claimed for them. That, however,


in itself, does not make the German acceptable to
154 PEACEFUL PENETRATION
the community. The men now justifying the murder
of women and children have many virtues in their
home life. They do not make a desirable neighbour,
as a nation. If Germans abroad, who have risen
to affluence under free institutions before their own

country had a single colony of any sort, join in the


craze of theirHomeland for " the new course "
which means joining in the envy felt by the Home-
land towards other nations no good qualities of
any kind can commend them to the citizens among
whom they have chosen to live. What would
otherwise be virtues become pronounced vices
when used for purposes of intrigue. 1 In fine, no
estimate of the German, as a colonist, in our Do-
minions or elsewhere, is of any value if it is detached
from his general character and disposition as a
German. Those in Australia and Canada who were
so loud in proclaiming the virtues of the plodding
German were often ill-equipped to enter into his
thoughts and feelings. Personally, I had always
disputed the assertion so often made by Germans
themselves, and
by English people also, that the
German emigrant became immediately absorbed
into the national life of the community in which
he Superficially he appeared to do so much
settled.
more than he did in reality. M. Ernest Tonnelat
1
That is the answer to Baron von Hiibner's eulogy of the
"
Germans whom he met in the Fijis in 1883 : Their activity,
their intelligence, their spirit of economy, and their sobriety
"
are warmly praised (Through the British Empire, II, p. 294).
Since that date the tendency of Germans all over the Pacific
to undermine British influence has gained momentum every year.
GERMAN COLONISATION 155

says that the Germans abroad form compact groups


which continue to maintain relations with the
"
mother-country, that wherever they go they carry
with them into the world all the habits and traditions
which are collectively and conveniently summed up
in the word Deutschtum" l I came to the same
conclusion long before 1908.
1
L' Expansion allemande hors d' Europe (1908), p. vii.
CHAPTER V
AUSTRALIA IN WORLD-POLITICS

I. INTRODUCTORY
" God set our land in summer seas asleep
Till His fair morning for her waking came."

I WAS about twelve years of age when those words


were written by one whom I was later destined to
see more than once at the offices of the Daily

Telegraph in King Street, Sydney. Even then


Australia and New Zealand were lonely outposts
of civilisation, and the maps of our schoolboy days
marked a large part of the island continent as
" "
Desert or left it blank. Some time previously
the poet had spoken of his adopted land as a
"... child within a chamber darkened
Left sleeping far into a troubled day."

But all the time steamship and railway, improved

communications of every kind were making the world


very small, were making it more and more impossible
for any nation that hoped to preserve its political
and economic existence to live its own life in isola-
tion. Forces and influences converging to a vast
change in the existing international situation went
"
on slowly gathering head. The very word "colonies
156
AUSTRALIA IN WORLD-POLITICS 157

has been falling into desuetude for thirty years


in Australia and New Zealand. Those born there
now areAustralians and New Zealanders, not
Colonials, and they speak of Dominions, not colonies.
Only two or three years after the time of which I
am speaking the New South Wales Government
offered, and the British Government accepted, a

contingent for service in the Sudan. John Bright


denounced the offer as an attempt to interfere in a
"
cause in which the colony had no interest." This
was very orthodox Liberalism, but no one has yet,
" "
up to the present war, denned the interests of
Australia.
The waking of which John Farrell speaks came
"
inevitably with the waking of others. The child
"
within a chamber darkened was secure from
European or other forms of aggression, in her
"
summer seas" unheeding because herself unheeded.
But an ambitious European Power became active
in the Pacific, Asia had awakened, and in the late

'eighties and early 'nineties the air vibrated with


movements federation, national service, Australian
navy, defence schemes. In a space of about twenty
years a great change had come over Australia.
First, there was the rise of Japan to a pre-eminent
place in world-politics, and the unrest in Asia ;

second, there was a better understanding of the


menace to the whole Empire which the growing
power of Germany and the ambitions accompanying
it were assuming. Throughout, Australian eyes
158 PEACEFUL PENETRATION
were on the The Germans said and many
Pacific.

English politicians supported them that Australia


would not be given a free hand to set up a Monroe
Doctrine of her own, and we saw Samoa, north-
east New Guinea, and some of the Solomon Islands,

pass under the German flag. We felt that the


conditions of clashing interests prevailing in Europe
would be transferred to Australasia. The date
of the transferwas 4th August, 1914.
These two decades witnessed the Boer War, the
establishing of federal union, the agitation for an
Australian army and navy. The first of these
events partly due to German intrigue need not
detain us. Opinion in regard to that war was not
unanimous, but the overwhelming majority was
in favour of placing all the resources of Australia at
the disposal of the Empire for the maintenance of
its unity. During this conflict on the first day of
the new century Australia faced the dawn as a
Nation. The movement towards union had passed
through a chequered history since the early advocacy
of William Nicholson, of Victoria, and the report
of the select committee of the Victorian Legislative

Assembly in 1857 which declared "On the ul-


:

timate necessity of a federal union there is but one


opinion." Not quite ten years later Henry Parkes
said in Melbourne at a conference of representatives
from all parts of Australia, except West Australia :

"
The time has arrived when these colonies should
be united by some federal bond of connection."
AUSTRALIA IN WORLD-POLITICS 159

some years
I lived in his electorate (St. Leonards) for
and well remember that was the burden of nearly
"
all his speeches. In November 1889 he said We :

occupied one country, a girdle of seas around us,


and though we had enormous stretch of coast,
this

yet we were isolatedby seas of the most pacific


character." This ex-Chartist had vision. Brunton
Stephens had asked :

" Not yet her day ! How long


*
not yet
'
?
"

The twentieth century gave the answer.


But Australia had long foreseen that the manhood
of the country must be trained for national defence

by land and sea. On 20th December, 1859, Henry


Parkes declared in the Legislative Assembly of
New South Wales, that the true principle of military
defence was to habituate every British subject in
"
the colony to the use of arms, and to foster among
all classes a loyal and patriotic spirit of reliance on
their own valour and military organisation."
William Westgarth, who lived in Australia for some
years, and paid a second visit after his return to
England, said that leading public men in Victoria
told him the effect of military drill had been an
"
advance in morale along the entire line of society."
He further stated that the unfavourable attitude
of many electors in England towards such service
seemed to him "incredible." 1 The very -year in
which Westgarth 's book was published Sir Henry
1
Haifa Century of Australian Progress (1889), pp. 249, 250.
160 PEACEFUL PENETRATION
Parkes said that the Government, of which he was
the head, "would carry out as perfectly as possible
the organisation of the defence force of the colony
. .
they should, by every means in their power,
.

encourage young men to enter the service, and to


learn the use of arms." In October of this year
(1889) General Edwards, an the Imperial
officer of

Government, inspected the troops of the different


colonies,and strongly recommended federal control
and the organisation of the whole forces for the
common defence. By the end of the following year
Australia had a total army of 31,795 men.
During the early years of federated Australia the
problem of defence was the outstanding feature of
policy and politics. The first bill introduced into
the federal parliament provided for compulsory
training for all British subjects in Australia between
the ages of twelve and twenty, the junior cadets
receiving instruction during 120 hours a year for
two and the senior 96 hours a year for four
years,
years. This was the measure which, according to a
section of the English Press, caused the whole con-
tinent to seethe with opposition and dissent. Yet
not one single candidate opposed to the Defence
Act was returned at the following election.
It was also just after the establishment of federal
union that the agitation in Australia for a local navy
began to make headway. Government and people
were warned from England that unless the navy
were supreme it might as well not be built. In
AUSTRALIA IN WORLD-POLITICS 161

reply it was pointed out that coastal defence could


reach a high state of efficiency with a naval outfit
that would be worthless for an offensive mission.
The course of the present war has proved that the
contention was right. In regard to attack and
defence the foundation conditions that govern
naval warfare have been materially affected by the
submarine, mines and other developments. Ad-
miral King Hall was one of the English authorities
at first opposed to local navies for the Dominions,
but after studying Australian conditions, the
problem of protecting Australian commerce, the
future of the whole Pacific and Indian oceans, he
admitted that the policy of an Australian navy was
the right one.
But the idea is not nearly so new as some English
writers imagine. The Empire, 5th April, 1855, a
time when New
South Wales was just feeling the
pulse of responsible government stir in her veins,
and Europe had passed through one of its ever-
recurring periods of storm and stress, commented
on the launch of the first Australian gunboat, the
Spitfire.
"
An
event of more than usual significance and
importance in these days of alarm and dread of
hostile invasion occurred in the history of our
colony, being no less a matter than the launch of the
first vessel of war built in the colonies (65 tons).

The event is important as indicative of the progress


of colonial improvement in naval architecture, and
162 PEACEFUL PENETRATION
significant, as be considered an event of the
it may
period not far distant when New South Wales may
possess a flotilla of her own capable of defending the
sea coast from all foreign invasion."
There is as great a difference between the Spit-

fireand the Brisbane, launched 30th September,


1915, as there is between Nelson's Victory and
Admiral Jellicoe's flagship. But in the meantime
the question of defence by land and sea had been
constantly in the minds of the leading men in every
part of Australia. On
24th November, 1887, Sir
Henry Parkes, after conferring with the British
Admiralty, introduced into the Legislative Assembly
"
of New South Wales The Additional Naval Force
"
Bill for strengthening the squadron in Australian
waters at the joint cost of imperial and Colonial
treasuries. When Alfred Deakin conferred with
Lord Tweedmouth in London, in 1907, the latter

agreed that there were strong arguments in favour


of Australia providing her own naval defence.
Since that date events have moved with startling
rapidity. The exploit of the Sydney and the
destruction of the Emden are known to England
and the world. What is not so well known here is

left Albany for Egypt, in one


that forty-five ships
convoy, on 2nd November, 1914, and thirty-eight
of these were transports carrying 31,000 troops.
Before the end of the following year seventy trans-
ports had been despatched to Egypt many of them
had made two, some of them three, trips and had
AUSTRALIA IN WORLD-POLITICS 163

conveyed 90,000 troops, 80,000 tons of equipment,


produce, and food, and 24,000 horses, without the
loss of a vessel or other serious mishap. And all
through the chapter Sydney has been developing
into a first-class naval station. Senator Pearce said
at the launching of the Brisbane :

"
The policy of careful preparation has been
amply vindicated, and the justification of the
policy is this : Had the ships of our Australian
Navy had to fight in our waters, and had they
been damaged, this was the only yard within
ten days' steaming distance, in the Southern
Hemisphere, where they could have been re-
paired. Unless you built ships here you could
not repair ships here. It was that we might have
N
a staff of trained workmen men competent to
build ships and repair them that this dockyard
was taken over by the Commonwealth Govern-
jS^ment."

On the same occasion Mr. W. M. Hughes, the present


Prime Minister of the Commonwealth, outlined some
of the big questions that loomed on the horizon.
Australia was committed to a definite naval policy,
which she must go on with whether she liked it or
not, and the Brisbane marked only its beginning
not its end. "The time is not opportune to elaborate
this line of thought, but it does appear to me that
the blindest of men must see that it is in the Pacific
164 PEACEFUL PENETRATION
that the great problems of the future will have to
be faced they are even now knocking at the door."
;

"
II. GERMANY'S PRESSING TO THE EAST." WHAT
IT MEANS FOR AUSTRALIA
" C'est en Asie Mineure
que les Allemands ont entrepris leur
plus vigoureuse tentative de penetration pacifique." Ernest
Tonnelat in 1908.

At fairly frequent intervals since the beginning of


1916 the English newspapers have had to devote
much space and energy to the slashing of peace
feelers said to have originated in Germany and
reaching the Allies through the medium of the
United States or the Pope. The proposals do not
reflect with perfect fidelity what is in the mind of

Germany. But for those who know the history of


German imperialism there is more in them than
appears on the surface, and though the present is
no appropriate moment for the discussion of every
large question of policy, yet the public of Australia
cannot be too well informed on Germany's eastern
aims. They are the master-key to the situation.
In my sojourn of seven years in Germany with
occasional visits to Austria I became increasingly
convinced that the immediate objective of the
Pan-Germanists of the Central Powers was to win a
preponderating political and economic influence in
the south-east of Europe, to extend this influence
over Asiatic Turkey, and finally to become estab-
lished on the Persian Gulf. No side-issues or
AUSTRALIA IN WORLD-POLITICS 165

happenings elsewhere, before or since the war, have


caused me to waver in this view. According to
recent issues of the Frankfurter Zeitung and the
Kdlnische Zeitung, Germany might allow Russia a
free hand in Persia if Great Britain restored the
German colonies and declared that she is disin-
terested in south-eastern Europe, which is to be
"
partitioned among Germany's allies."
A good deal has been written lately concerning
the history of the Drang nach Osten doctrine in
Germany and the ambitions wrapped up in it.
With that history I am not concerned at the moment .

The Baghdad Railway and Germany's developments


in Asiatic Turkey are among the outstanding in-
"
stances of peaceful penetration." It was often
declared in England, before the war, that Germany's
aims here were purely economic. Where can we
point to any German enterprise in any part of the
world that has been purely economic ? Dr. Paul
Rohrbach said in 1902 that the railway had an
undoubted political aim, and that aim was the
strengthening of Turkey to enable her to anticipate
and withstand any attack from any possible quarter.
Only a few months before the outbreak of the world-
conflicta booklet written by Dr. Winterstetten,
Berlin-Bagdad, ran through four editions in a very
short time. have not seen the little book in
I

England, nor have I heard any reference to it. Its


teaching may be summed up in this wise The first
:

and the essential step in Germany's world-politics


166 PEACEFUL PENETRATION
is the extension of her sway, political and economic,

from the Baltic to the Indian Ocean. This should


be the first article in the creed of German imperialism
and any other lines of policy for the attainment of
universal dominion would defeat their own end.
Dr. Winterstetten only gives expression to what
has been in the mind of Pan-Germanism for several
decades. In 1907 the Austrian writer, Baron von
Chlumecky, urged the same view upon students of
"
Weltpolitik in the Dual Monarchy. Salonica is
our hope for the future." He expanded this idea
atsome length and showed that this hope was based
upon the possibilities, political and economic, which
the control of a system of railways in Asia Minor
and Mesopotamia, and extending to the Persian
Gulf,would open up to Middle Europe.
A. T. Mahan, the greatest authority of his day
on naval policy, said in 1902 that Great Britain
must exercise paramount political influence in the
Persian Gulf and jealously watch all approaches
to it. He gave a variety of reasons, one of which
"
was that the control of the Gulf by a foreign
"
State of considerable naval potentiality would
"
enable such State to flank all the routes to the
farther East, to India and to Australia." That the
truth of Mahan's contention has been clearly
perceived by German and Austrian imperialists has
been proved by the lines on which they have
consistentlyworked for the past fifteen years. In
guiding the springs and motives that make up the
AUSTRALIA IN WORLD-POLITICS 167

historic tragedy of the Balkans what else has Austria


had inview but to break a road to Salonika and
beyond for her own and Germany's armies, muni-
tions, and wares, and finally for complete political

ascendancy ?
During my sojourn in Germany I never lost an
opportunity of trying to bring home to Australians
how soon world-politics would touch them with a
near and living contact. A study of the map
showing Germany's and Austria's railway system,
and the lines in course of construction or projected
show the force of Mahan's
in Asiatic Turkey, will

contentions, and how profoundly the Pacific is


interested in developments in the Middle East.
German maps and globes twenty years old show
railways under German control converging on the
Persian Gulf and linked up by steamship routes to
Australia. It was not for nothing that England
secured Perim, a protectorate over the Kuria Muria
Islands, and the right to appoint the Sheikh of the
Bahrein Islands. These protectorates and areas
of influence dotting the Red Sea or its
approaches
"
form the vestibule of the Britannic Empire in
India, the Far East, Australasia, Eastern Africa,
and South Africa." l Weltpolitik is a question of
communications.
Throughout the war the operations in the Balkans
and Asiatic Turkey were regarded in Germany
1
E. J. Payne, Colonies and Colonial Federations (1904),
pp. 31-2.
168 PEACEFUL PENETRATION
as no isolated episode. They were a major
part of her general scheme. The dreams of
dominion in the East could not be realised to the
full while England held the seas, the Mediterranean
sealed at both ends, Aden, Colombo, and Singapore,
because Germany could not concentrate all her force
"
for offence. But by peaceful penetration," which
in German means secret political undermining while
officially professing no sinister political designs, she
had already effected much. Twenty years ago the
" "
Kaiser heard theof the East, and proclaimed
call
himself the protector of the three hundred millions
who believe in the Koran and the Prophet. Since
then the momentum of Teutonic imperialism has
trended steadily to the final challenge.
Doubtless the terms of peace which Germany
would accept in July 1916 are far different from
those I heard formulated in Berlin in August,
September and October, 1914, when the demands
announced in the Tageszeitung, and indicated in the
thousands of maps showing the re-distribution of
European territory after the war, clearly pointed to
the conditions which a large section of the German
people would like to impose on the world. In the
meantime let us keep our eyes on the Near and
Middle East. The much vaunted assault on Egypt
and the Canal, the " throwing off of the British
world-yoke," as Dr. Georg Irmer, late German
consul at Sydney, called it, has not been effected ;

but Germany is looking forward as eagerly as ever


AUSTRALIA IN WORLD-POLITICS 169

to railways and dividends and economic develop-


ment in this quarter. The cancellation of all
concessions to Germany in Asiatic Turkey, including
of course that for the Baghdad Railway, is essential
to our security. The cardinal feature of the British
Empire is its ubiquity, and Germany seeks the spot
" "
where this every whereness can be most con-
veniently disarranged. A glance at the map will
show the possibilities that present themselves to a
great naval Power established on the Persian Gulf.
Add to this that Germany hopes to absorb Holland
"
either by conquest or peaceful penetration,"
which would give her the Dutch East Indies and
New Guinea and make Australia's position in the
Pacific ever more precarious as the German navy
developed. When the German scheme was complete
Britain's hold on the Gulf would be precarious in the
extreme. No positions are more sensitive to attack
from the land approaches than narrow waterways
like the Suez Canal, the Gulf, and seaports upon
which a network of railways converge under hostile
control. Australia's interest in the whole situation
and its strategic possibilities is clearly brought out
1
by Mahan.
1
The Problem of Asia, p. 28.
170 PEACEFUL PENETRATION

III. HOMOGENEITY
"They are trustees for the whole civilised world and the
British race in particular trustees upon whom has been cast the
responsibility of the development of the great continent, of
steering the infant feet of its people along right lines. They
had endeavoured to keep, and had kept, the fountain of Anglo-
Saxonism pure in that country." Mr. W. M. Hughes, at Bristol,
21st May, 1916.

Within the past decade there has been a big out-


put of discussion on imperialism, Greater Britain,
the Empire beyond the seas. A whole literature
has grown round the subject of " the expansion of
England." But much of the output has been
impersonal, bookish, learned, historical. Important
phases of the subject have received little or no
attention from imperialists of the student type.
The experiences of those that have travelled over
the Empire, and of men who have played a large
part in building and shaping it, will necessarily be
somewhat different from the views and speculations
of theorists.

Leroy-Beaulieu, looking back upon the history of


Australian development, says, "The colonisation of
Australia is, in fine, England's masterpiece."
Commercial progress in itself is only one chapter
in the record of those venturesome spirits who
planted Britain in the Pacific. Sydney sent her

consignment of wool 245


first to England in
Ibs.

1807 and within twenty years it had increased to

three million Ibs. Between 1815 and 1825 an


AUSTRALIA IN WORLD-POLITICS 171

average of 300 free immigrants ai rived each year


in New South Wales, which is far above the average

Germany could maintain for South West Africa


in the days of a fast steamship service and a frenetic
popular demand for "a place in the sun." In 1851
Melbourne just existed in June 1854 it had 167
:

schools and 12,000 boys and girls attending them.


I am much more concerned with these boys and

girls than with the gold rush. In Australia,


Tasmania, and New Zealand, taken as a whole,
95 per cent, of the inhabitants are British. We are
not faced by the racial and linguistic problems that
press upon Canada, the United States, and South
Africa. This is a unique starting-point for setting
up an English culture-type in the Southern
Hemisphere, free from the defects of an old-world
civilisation, if also lacking in some of its finer
culture.
It is nearly thirty years since SirHenry Parkes
"
said : We were one stock. We were more of
one stock than the people of any other country,
especially of any other new country. We knew each
other. We had inherited not only the same
language, the same literature, the same faith, but
to a large extent we had the same social customs
and habits of life." On the only occasion on which
I ever met him he spoke in a strain that left no

possibility of misunderstanding his attitude on this


question. The matter was one that lay very near
the man's heart. I remember almost his exact
172 PEACEFUL PENETRATION
"
words : Federation is safe, but it will not settle
allthe problems that Australia will have before her
in the days to come. It is, however, the first
condition towards their settlement. I hope that
in the future the British stock will continue to

predominate over all others, even though it may


not maintain its present proportionate superiority."
On 6th February, 1890, in one of his last important
"
public utterances he returns to this theme The :

crimson thread of kinship runs through us all.

Even the native-born Australians are Britons, as


the men born within the cities of London and
Glasgow."
A similar attitude was taken up by A. I. Clark,
chairman of the judicial committee of one of the
federal conventions, and afterwards a judge of the

Supreme Court of Tasmania. From his earliest


years he was an enthusiastic federalist. Every
time he visited Sydney I had an opportunity of
discussing federation, the future of Australia, and
kindred questions with him. He knew the United
States well, and was a keen student of American
institutions and American federal law. He told me
himself that he used his influence to mould the
Australian Commonwealth Bill on the American
constitution and American constitutional
principles
as far as these were applicable to Australian con-
ditions. But he often remarked that the flood-tide
of emigration to the United States was not only
altering the original stock but was producing a
AUSTRALIA IN WORLD-POLITICS 173

community that lacked stable national characteris-


tics. He saw very clearly how the large German
element in the Republic had affected the national
character as a whole, and that it would inevitably
have the same result in Australia if it became
"
equally bulky. This in itself," he added, "might
not be a serious menace to the Commonwealth,
but suppose element, owing to European
this

complications, wanted to sow discord through the

length and breadth of Australia in the interests of


"
their own Homeland ? The question was prescient
of 1914 and the years of peaceful penetration which

preceded it. Men like Parkes and Clark and John


Ballance, of New Zealand, saw the national con-
sciousness in process of formation, at times slumber-

ing, at times stimulated by events in the Pacific


or Europe, and they knew that whatever form it
might ultimately take when Australia and New
Zealand became a real factor in world-politics, its
character would be materially weakened if there
were a number of unassimilated elements in the
nation. They looked beyond the mood and move-
ment of their own time, of tariffs and wheat-supply,
and Bible in schools, or even droughts, and were
not always without misgiving for the future. Their
native or adopted land lay afar off from the teeming

Europe, but destined to be awakened


political life of
" "
perhaps by a troubled day and the sullen
boom of twelve-inch guns. In 1915 and 1916
Australasia is scanning casualty lists in which many
174 PEACEFUL PENETRATION
an Australian and New Zealand family is nearly
interested.

Percy Rowland in The New


Nation emphasises
"
that not all the national feeling in the world can
make Australia other than English," politically
and culturally. But this homogeneity is just what
the Germans in British Dominions everywhere are
striving to break down at any rate there has been a
strong tendency in this direction in recent years.
Friedrich Fabri says that it is a more important
matter to Germany to cultivate the Deutschtum
of her emigrants scattered through the world than
to develop her own
colonies, that these emigrants
must not be lost to the Fatherland but must become
"
a factor of national and economic significance,"
and he complains that the descendants of Germans
in Australia become English (anglisiert) too readily. 1

So, a German school here and there, and active


German clubs in all the large cities, and the presence
of energetic consuls, may introduce a little variety
into English language and literature, English
Common Law and political institutions, to say
nothing of general social sentiment, in the Common-
wealth.
I am no race-fanatic and the theories of Gobineau
and Lagarde have no attraction for me but I ;

regard this question of homogeneity as the most


momentous which can engage the attention of the
British Empire, but especially the attention of
Fiinf Jahre deutscher Kolonialpolitik, pp. 131 and 137.
1
AUSTRALIA IN WORLD-POLITICS 175

Australia. A
conglomerate of conflicting national
"
ideas and ideals can never be a nation. A nation
is a soul, a spiritual principle," Ernest Renan tells
us. He is not thinking of racial homogeneity,
which we have not, any of us, possessed for cen-
turies, but of undivided allegiance and the in-

spiration born of a spiritual sense of unity. No


settler should be welcomed in any part of the Empire
unless he is willing to be absorbed into the com-

munity of his adopted country. Industry and thrift


not only lose their worth, they are positive vices,
if they run counter to the political and moral unity

of the new State. years ago there was a


Many
great outcry in Australia against a proposal to send
" " "
some thousands of General Booth's submerged
"
tenth from England. I remarked at the time
and how subsequent happenings have confirmed
the remark that they were not ideal colonists,
!

but that such men would never develop into the


danger to a free national Australia that a large
foreign element would become. We could safe-
guard labour from degrading conditions, we could
stamp out illiteracy, national traditions and charac-
teristics we could not eradicate.

Many circumstances and incidents within the past


few years have given Australia and New Zealand
a place in the public eye of England. The latest
is the exploits of the Anzacs. Who are they ?
An amalgam, English, Scotch, Irish, Welsh, but a
very solid amalgam. The traditions which they
176 PEACEFUL PENETRATION
brought to the country in no way encouraged a
divided sovereignty.
The lesson from the United States broods over us.
The poor spiritual output, the grossness of the
material life, the lack of vision what else can be
expected from a country in which there is a German
vote, an Irish vote, a Polish vote, and even a Czech
vote ? The extreme heterogeneity of the popula-
tion, based upon varying national traditions brought
from Europe, is a hindrance to close co-operation
for cultural ends and to the type of free democracy
for which America once professed to stand. Many
public men in the United States declare that the
increased heterogeneity, and above all the German-
American element, is responsible for a decline of
American influence in the chancelleries of Europe
compared with what it was when the country was
much less important as a commercial Power. How
often I heard Edmund Barton exclaim in East
"
Sydney, during the federal movement, A continent
"
for a nation and a nation for a continent Shall !

we have any nation worth the name if in the future


a state of affairs similar to that exists ? A New
York journal of 23rd April, 1916, speaking of the

interchange of Notes between the United States and


Germany concerning the latter's submarine warfare
"
on mercantile vessels, said The President's
:

difficulties had been increased owing to the fact


that the Germans had organised political pressure."
What a commentary on the national outlook in the
AUSTRALIA IN WORLD-POLITICS 177
" "
freest democracy in the world ! At the time
of the presentation of the last American Note
Senators received over 200,000 telegrams urging a
conciliatory attitude to Germany. Senator Sher-
man, of Illinois, himself a pro-German in regard to
the European War, characterised the transmission
of such messages to the Senate as "an abuse of
the right of petition and a menace to the liberty of
action of this body." Most of these telegrams from
" "
your constituents were sent out by the American
Truth Society, whose leading members are Herren
Otto Renner, Wurlitzer, Brunhoff, Zinke, Kohlsaat,
Schwaab, and Schott. Nor are the people divided
only into pro-Ally and pro-German sections. There
are minor lines of cleavage, both in regard to the war
and scores questions, based upon the
of other
intensely heterogeneous nature of the population.
Mr. Sydney Brooks (Daily Mail, 16th May, 1916)
tells us that schools and other influences which

Americans hoped would a ssimilate all alien elements


into one compact nation have failed utterly, and
"
that Americans themselves assert, Racialism is
"
rampant among us." What troubles them more
than anything else is to find themselves surprised

by the war into the suspicion that the United States


is not a nation." In March 1916 Count Bernsdorff
presented a German Note which created some
indignation in certain quarters, because it coolly

announced that his Government felt confident that


" "
the people of the United States would appreciate
178 PEACEFUL PENETRATION
the German view-point. In a word, the German
appeal was to be carried beyond the Government of
the Republic.
These dangers are not the growth of a day or a
year. A committee of the Fiftieth Congress of the
United States investigated the subject of immigra-
tion exhaustively and saw the danger threatening
not only industrial conditions but the morale of the
whole community. Its report concluded "Persons
:

who immigrate to the United States should at least


be composed of those who good faith desire to
in
become its citizens and are worthy to be such."
Samuel W. Mendum, writing in The North American
Review in January 1891, said that the population of
"
sixty-two millions was distributed in many
distinct communities, differing from each other in
habits and customs, and even in language," and that
the immense task was imposed upon Americans
"
of inculcating the principles of our government
into the minds of those children whose parents were
born and brought up under other systems." We
cannot note too carefully what he says of the State
which contains the largest proportion of German
"
blood in the Republic : In Wisconsin the exclusive
use of the English language in the public schools is
brought in question."
Even in Switzerland, a community supposed to
be knit together by a common struggle against
aggression, by ancient ties and history, differences
on the war have resulted in feeling sometimes reach-
AUSTRALIA IN WORLD-POLITICS 179

ing an extreme tension. G. W. Zimmerli says that


it was seen very plainly that the race question was

the cause of more acute bitterness than had hitherto


been thought possible in Switzerland. 1
The thin end of this same wedge has already been
fixed in Australia. In the middle of December
1915 the Trades Hall Council in Melbourne re-
commended the members of all unions affiliated
with it to ignore the cards which the War Committee
appointed by the Government had instructed to be
sent out. The mover of the resolution possessed a
name which was a sufficient indication of his
Teutonic origin. In the Trade Unions of Queens-
land, and a few other parts of the Commonwealth,
notably in Broken Hill, German or Australian-
German influence has also been palpably in evidence.
It has also been a disturbing and dangerous element
at by-elections since the war.In a leading article
the Sydney Daily Telegraph (15th February, 1916)
said :

"
It would be intolerable if an elector of
notorious German
predispositions should by his
combination with others of the same nationality
be able to influence a Government or affect an
election while the war is in progress. The
German vote, it has been stated, was a factor
in the Wide Bay contest. That is as it may be.

1
Durch Frankreich und Deutschland wdhrend des Krieycs
(1915), pp. 24, 29, 30.
180 PEACEFUL PENETRATION
The election is over, and it is natural that excuses
should be found for the partisans of the defeated
candidate. But no political party can have any
sort of sympathy with attempts by unscrupulous
engineering agents to stir up hostile votes because
of action that the Government of the day, or the

Opposition of the day, had thought it necessary


to take towards those who, by the fact of their
enemy origin, had suffered disabilities under the
law. There should be no German question in
Australia."

The article went so far as to declare that if naturalised


"
Germans in important divisions cast their suffrage
"
in a body they might be powerful enough to ex-
ercise considerable influence at a general election.
This is exactly the course of procedure which Die
Post, twelve months before the war, urged upon
German-Canadians in Winnipeg and other districts.
How would Australia, then, have stood to the
Empire, and to herself, in the war, if there had been
in the Commonwealth a German vote on the
American scale, thirty or forty daily newspapers
in theGerman language, a considerable section of the
ordinary Press under German influence, and a dozen
German-Australian senators in the federal par-
liament ? Writing from Germany to the Australian
Press during the past seven years I have more
than once pointed out, both in regard to this dark
menace of Deutschtum and, generally, in answer
AUSTRALIA IN WORLD-POLITICS 181

to the clamour to fill the


empty spaces, that mere
numbers and man-power are by no means identical.
At the very best, every man inherits his past and
his nation's past, but when to this are added active

sympathies with a Fatherland aiming at world-


power, and deliberate plotting to destroy the
sovereignty of his adopted country, the real meaning
of a divided allegiance and its terrible possibilities

for the futurecannot be too positively brought home


"
to Australians. Strength is not won by miracle,"
Meredith told us in one of his big utterances to a
Europe torn by strife.

" It is the offspring of the modest years,


The gift of sire to son."

IV. THE NEW IMPERIALISM


The Australian correspondent of the Manchester

Guardian, writing from Melbourne on 2nd April,


"
1916, on Australia and Imperial Federation," said
that Australians cherished no illusions on this
subject, that they would welcome the fullest
information on foreign policy afforded them and
work in the closest harmony with Britain in military
"
and naval matters, but yet did not intend to
sacrifice their national independence." Australia's
" "
national independence is a source of great
solicitude to a school of politicians in England at
present, and it k the traditional school that always
ridiculed most strongly Australia's and New Zea-
182 PEACEFUL PENETRATION
land's protests against German expansion in the
Pacific, than which nothing conceivable could have
"
more seriously threatened their independence."
Personally, I can see no inclination on the part
of any responsible public man in England to inter-
"
fere with Australia's national independence."
Australia, to a greater extent than the rest of the

Empire, is faced with questions much wider than


mere fiscalism. Australians, as far as I can gather
from their newspapers and from a fairly large
correspondence, fully recognise that with Britain
they are fighting a common battle in a common
cause. But they also realise that they continue
if

along pre-war lines, they may be again involved in a


general conflict against their will, and be defeated.
They may see then: industry and commerce dominated
" "
by Germans and peacefully penetrated.
The Sydney Bulletin said on 30th March, 1916 :

"
Australians and the people of the other
Dominions rose as one shout when the test of

They could not possibly have


battle arrived.
done more whatever the political relationship
with Britain had been ; and the odds are that if

there had been any sort of pressure brought to


bear upon them they would have done much less."

The Australian nationalist organ went on to say


" "
that the concern which has spread itself over
the world and is known as the British Empire is
AUSTRALIA IN WORLD-POLITICS 183
"
really not an empire at allbut something far

bigger and worthier." It admitted, however, that


the new imperialism developing in certain quarters

might be a useful corrective to extreme tendencies


in the opposite direction which showed above the
surface occasionally.
I have before me now a letter recently received
from a man who has played an important part in
the public life of New South Wales. He writes :

"
For the moment Australia is not thinking of
preferential trade or anything fiscal, but of winning
the war. But I am safe in saying that no public
man anywhere in the Commonwealth believes that
imperial relations after the war will remain exactly
as they were. We are beginning to ask about the
future and where we shall stand in regard to it."
The spontaneous loyalty Dominions on the
of the
outbreak of the war, which has grown more and not
less intense with the months, has evoked a sentiment

of imperial enthusiasm not previously superabundant


in England. It has also given rise to some im-

practicable suggestions and ill-digested schemes,


No " root and branch " innovations can be suddenly
brought into the existing structure and strengthen
it. Any development to a large measure of unity
along political lines will only crystallise into fruitful
results if it represents the deliberate and free choice
of self-governing communities. But something like
an imperial public opinion has been created. Will
this be allowed to sink back into the old grooves ?
184 PEACEFUL PENETRATION
As far as the question of British versus German
trade concerned, the Age, the greatest organ of
is

Protection in Australia, in its leading article of


15th April, 1916, accurately summed up what the
Commonwealth thinks to-day "In what he "
:

"
(Mr. W. M. Hughes) has said about German trade
he certainly speaks for the informed mind of
Australia."
I know Australian sentiment. A
strong feeling
of loyalty to British institutions, political and social,
but an equally strong dread of any imperial over-
lordship which would interfere with local autonomy
or the developing democracy of Australia. The
war and Australia's response to it have proved that
this was no selfish claim to take the benefits of
the imperial connection without its burdens and
responsibilities. Australians knew little of the inner

working European politics. But


of international
most of them saw clearly enough that in the present
stage of world-history German domination of Europe
meant the triumph of the Prussian State idea
generally. Very definitely for Australia the Mother-
land stood for certain institutions, Germany for
certain others. If separatist tendencies on both
sideshave faded to imperceptible dimensions it is
because they have become merged in a consciousness
of common interests to leave ideals altogether out
of consideration.
William Westgarth well said a quarter of a century
ago that under the existing loose connection the
AUSTRALIA IN WORLD-POLITICS 185

colonies were just as liable to attack as under any


scheme of Imperial Federation. Would complete
separation render them immune ? No well-in-

formed Australian or New Zealander would dream of


answering that question in the affirmative. The
choice before Australia is whether she remains bound
up with the British Empire or some other Empire,
not whether she will be a separate sovereign State
or not. When the remnants of feudal privilege
threatened democracy throughout the world,
Australia felt that she was profoundly interested
in Britain's attitude and Britain's ability to maintain
it. Call this interest imperialism or anything else.
The new nation offered to swell Britain's army by
20,000 men, and shortly afterwards undertook to add
another 20,000. On 23rd March, 1916, the Australian
Minister of Defence declared that by June of this
same year 209,600 men would have been sent
abroad, and since then it has been reported that the
number will reach over 300,000. At the same
time the Australia and Sydney have been active
in the Pacific, New Guinea, Samoa and the German
Solomons have been occupied, and the New
Zealand was hi the vicinity of the North Sea on
31st May, 1916.

English Liberalism had proclaimed that the


" "
natural destiny of all the colonies was to become

independent republics. Richard Cobden had not


186 PEACEFUL PENETRATION
"
preached his evangel to deaf ears. The Colonial
system, with all its dazzling appeal to the passions

of the people, can never be got rid of except by the


indirect process of Free Trade, which will gradually
and imperceptibly loose the bonds which unite our
colonies to us." The Germans are fond of re-
1
producing this passage. Probably there were in all
political parties in England some who did not take
as much interest in the colonies as to speculate on
" "
their natural destiny at all. The new imperialism
is the child of that indifference. Britain and Dom-
inions alike are pages in a common history which
neither can turn down even if
they would. Cobden
and England's wars had
his followers declared that
been mainly on account of colonies. A few decades
later one of Germany's most fervid imperialists
asserted that if England and her colonies became
united in a close federation they would be able to
resist any European combination in half a century.
Britain had already enjoyed free trade for seventy
years, she had already made her Dominions self-
governing communities, independent in all local
questions, when she found herself confronted by a
Power which had made greater strides in industry
than any other in history within the same period.

It is quoted by the Preussische Jahrbucher, Band 57, Heft 5,


1

p. 445, and by Schulze-Gaverintz, Britischer Imperialismus


und englischer Freihandel. The Bremer Nachrichten and Der
Reichsbote constantly held before the German public encouraging
accounts of the movement for independence in Australia and
Canada.
AUSTRALIA IN WORLD-POLITICS 187

This Power sent one-third of exports to the


its total

British Empire. But its avowed aim was universal


dominion, not mere commercial ascendancy. All
parts of the British Empire were equally concerned
in such an aim.
The future of the Pacific will be one of the great
problems of world-politics. Improved communica-
tion is bringing Australia and New Zealand more and
more into touch with the Old World. The opening
of the Panama Canal brings New York nearer than

Liverpool to Sydney, by about 2500 miles, and


disregarding the coastal trade of the United States
the heaviest traffic has been between the Pacific
Coast of the United States and Europe. With the
Adelaide-Port Darwin railway completed, and the
Port Darwin-Cloncurry-Brisbane line linked up,
and a line from London to Singapore in existence
all certainties of the future, whoever may control
them itwould be possible to reach the principal
cities in Australia from England in less than a

fortnight.
and New Zealand retain Germany's
If Australia

overshadowing menace to
Pacific colonies a great
them will have been cleared away. The French
possess New Caledonia and Tahiti the latter an
important station since the opening of the Panama
Canal and the New Hebrides are administered
in condominium with England, a result which has
never given satisfaction to either nation or to the
natives. But France has not been felt as the dark
188 PEACEFUL PENETRATION
cloud on the horizon. She had not called for the
trident, she was not clamouring for world-sway,
and she had never " exported " men to Australia
" "
to control industries and undermine British
influence.
CHAPTER VI
NATURALISATION
SOME things have become an easy formality to the
German's conscience. One of these is the renuncia-
and his oath of
tion of his allegiance to the Kaiser

allegiance to another sovereign. The process of


naturalisation in the country marked down for
"penetration" is so characteristic of Germans, it
seems to spring so naturally out of political de-
velopments at Home, that we are justified in regard-
ing it as one of the capital achievements of the
German genius.
In July 1913 the Delbriick law was passed by the
Reichstag. This law was intended to make a
not so much a scrap of
certificate of naturalisation,

paper as an instrument of Deutschtum in the hands


of a German, because it allows naturalised Germans
to retain their fealty to the Fatherland. Obviously,
the law aimed at encouraging Germans abroad to
become naturalised while remaining good Germans,
and thus to secure German votes in the interests of
" "
the cause and to assist espionage. The law was
unnecessary. Long before July 1913, Germany had
189
190 PEACEFUL PENETRATION
sent her agents to the United States, to France,
Belgium, Italy, Great Britain, Australia, Canada, and
all parts of the British Empire, to extend Germanism

in manifold ways. These agents, apparently with


convinced their compatriots who had
little difficulty,

already settled in our Dominions, or elsewhere, and


had become naturalised, that allegiance to Kaiser
and Fatherland was perfectly compatible, morally,
with the solemn oath which invested them with
citizenship under British or some other sove-
reignty.
For every German of the present generation who
has taken out British naturalisation papers in good
faith, at least a dozen have done so for commercial

purposes. That is bad enough, but it is not the worst


feature of what has developed into a corner-stone
of the German system. How many others have done
so as direct agents of Deutschtum and the German
Government it is not possible to say, but the
experience of Great Britain and the British Empire
in this respect is not exceptional. Public men
in the United States, in Brazil, and in other of the
South American republics, have also drawn attention
to the contempt for their cworn allegiance shown by
naturalised Germans, and warned the latter that
such disloyalty will not be tolerated. Mr. F. W.
"
Wile wrote in 1906 Already 500,000 Germans,
:

emigrants and their offspring, are resident in Brazil.


The great majority of them, it is true, have embraced
Brazilian citizenship, but their ideals and ties are
NATURALISATION 191

and inviolably German." l In the same


essentially
year M. R. Gonnard dealt at some length with
Deutschtum in Brazil and arrived at very similar
conclusions. 2 On the outbreak of hostilities France
found herself face to face with a serious menace from
naturalised Germans and Austrians, and decided
to strike off her roll of citizenship all those who had
been naturalised within the past five years. In
1896 there were 30,000 naturalised aliens in France
and 120,000 in 1911, the
overwhelming majority
"
of these being Most of these
Germans. franco-
allemands," bound by solid ties to Germany and
Austria, were never remotely French in sentiment
or sympathy, and some of them actually returned
home a day or two before the declaration of war and
3
rejoined their regiment. M. Leon Daudet had
previously tried to rouse public attention to this
"
insidious artifice." In various centres the Ger-
"
mans had actually established bureaux de natu-
"
ralisation to facilitate matters for applicants. 4
He brings a convincing array of facts to prove how
Germans combined business with espionage, and
cites the case of one German who claimed both
nationality and domicile in half a dozen European
and American countries, and had exploited patents

1 "
German Colonisation in Brazil," Fortnightly Review,
January 1906.
2
au 19" siecle (1906), pp. 165-77.
L' Emigration europeenne
3
L6on Daudet, Hors du joug attemand (1915), " L'artifioe de
la naturalisation," pp. 146-51.
4
UAvant-Querre (1913), pp. 39-40.
192 PEACEFUL PENETRATION
and their inventors in all of them. i Signor Giovanni
Preziosi denounces in justifiably vigorous language
the twofold allegiance of Germans naturalised in
Italy, and the work they have been carrying on in
"
the interests of Deutschtum and Potsdam. These
German citizens who become at the same time
Italian citizens, how they stand disposed to
will

Italy in case of a war in which she is not found on


2 "
Germany's side ?
What is behind a situation so puzzling to many
Britons ? We have been too ready to accept the
truth of the maxim Ubi bene, ibi patria and to
conclude that those prosperously settled among us
would be loyal to their new home. I have already
shown that for some years Germans everywhere
have responded more and more to the call from
Berlin and Vaterland. Several associations in
"
Germany, such as the League to promote Ger-
manism abroad," all of them covertly supported
by the Government, have worked energetically to
strengthen this tendency. Our absurd naturalisa-
tion laws made this response to such associations
and influences much easier. British citizenship has
been too cheap. The Naturalisation Act of 1870
required neither a competent knowledge of English
nor adequate inquiry into the character of the
applicant. Aliens seeking naturalisation had to
1 Hors du joug allemand (1915), pp. 226-7.
2
La Oermania alia conquista delV Italia (1915), p. 75. See
"
the whole section, I Tedeschi domandono oggi la cittadinanza
italiana," pp. 71-5.
NATURALISATION 193

declare their intention to reside in England, but


there was no real check on them in this respect.
In Germany I met several Germans and Russians
who had been naturalised in England, returned to
Germany and settled there, or at any rate were more
settled there than anywhere else, and still claimed
British citizenship.

Throughout the whole Empire the law dealing


with the naturalisation of aliens is full of defects.
A naturalised alien resident in one part of the Empire
is a British citizen, in another part of the Empire
he is an alien and it may be difficult to say what his
nationality really is. In Australia the law is
in a state of uncertainty and confusion. Probably,
though not quite certain, the Federal Parliament
it is

has not exclusive jurisdiction in the matter, though


"
it isundoubtedly one of national concern in which
the whole Commonwealth is politically and socially
interested." 1 The States, apparently, still have the

power to naturalise aliens, but such naturalisation


by State law is only operative within the same
"
State's territory. The naturalisation of an alien
in respect of only a part of the Commonwealth is
inconsistent with the political unity of the Common-
wealth." 2 What is true of the relationship between
federal and
law here is true generally of the
state

relationship between imperial and colonial law.


The imperial Act of 1870 gave colonial legislatures
1
A. I. Clark, Australian Constitutional Law, p. 97.
*
16., p. 100.
N
194 PEACEFUL PENETRATION
power to naturalise aliens, such naturalisation to
be operative only within their own jurisdiction,
but in practice it was necessary to issue British
passports to such colonially naturalised aliens to
protect them when travelling abroad. This Act
makes no provision fornaturalisation in India,
but the subject has been dealt with by a local Act,
under which applicants are required merely to be
"
settled in the territory, or residing within the
same with intent to settle." The position abroad
of such a naturalised alien in regard to nationality
is more uncertain than that of an alien naturalised

in a self-governing Dominion.
The 1870 Act required that the naturalised subject
should either reside in the United Kingdom or serve
under the Crown. 4 and 5 Geo. V. cap. 17, required
the alien to satisfy the Secretary of State that he
is of good character and possesses an adequate
knowledge of English, and intends to reside in the
Dominions. India is left as before ;
but the self-
governing Dominions may adopt the Sections of
Part II and then grant certificates of imperial
naturalisation. But the confusion caused by local
acts is in no way removed by 4 and 5 Geo. V.
There are certain matters in which some common
measure of law and legislation is essential to political
unity, even to the existing loose political ties.
Whether they desire it or not, the Dominions are
being brought more and more within the scope of
world-politics, and some questions have already
NATURALISATION 195

been dealt with, of necessity, conjointly by the


imperial and local parliaments copyright, patents,
trade marks, extradition, and merchant shipping
all come under this head. Naturalisation is as
important as any of those matters, except the last.
Alderman J. E. Fawcett, writing in the Yorkshire
"
Post (8th June, 1916) said that at least one well-
known German-born resident of Bradford has boasted
that he owes allegiance both to Germany and Great
Britain." This is a very inconvenient allegiance to
us when those who owe itare living in our midst.
Mr. Ahlers, another naturalised German in the
north of England, whose activities brought him into
prominence in the early period of the war, or just
"
before the outbreak of hostilities, said, Once a
German always a German." He was not the first
German to make this avowal. It is
naturalised
significant, and ought to strengthen the hands of
those who demand greater stringency in admitting
Germans to our citizenship. On 7th June, 1916, the

Empire Business Conference resolved that no aliens


from enemy countries should be allowed to take out
"
naturalisation papers until after twenty years'

uninterrupted residence within the Empire under


police supervision and registration."
Nemo potest exuere patriam. That is always true
"
of a German morally. Mr. Jules Claes says, You
cannot naturalise a German." But we could
certainly have taken stricter precautions to prevent
the cheap degradation of our nationality which
196 PEACEFUL PENETRATION
British citizenship in the minds and
had become
hands of Germans. These would-be Britons have
been allowed to become naturalised without being
compelled to apply to their own Government, under
their law of June 1870, for the Entlassungsschein,
or certificate of discharge of allegiance. This
certificate would certainly have been refused if the
applicant had made default in the matter of military
service. We have had in our midst naturalised
Germans who never divested themselves in this way
of their German nationality, and who have, especially
since the war, openly boasted of their double alle-

giance.

How THE SYSTEM WORKS IN PRACTICE


The Merchant Shipping Act an imperial statute,
that is, one which applies to the whole Empire

never contemplated the ownership of a British vessel


by foreigners, but the bad draughting of the Act
and our naturalisation laws together seem to have
enabled foreigners to evade its intent. In March
1916, Mr. Justice Bargrave Deane gave a decision
concerning a ship owned by a company registered
as British, but not entitled to be on the register of
British shipping. The chairman of the company
which owned the vessel, the holder of more than half
the total shares, was a German who had become
naturalised in England, and who had been living in
Hamburg during the seven years preceding the war.
Two other directors were also naturalised Germans,
NATURALISATION 197

one of them domiciled in Hamburg. The Secretary


of the Company was also resident in Germany.
The bona fides of registration were not questioned
till three months after the outbreak of hostilities.
The judge declared the vessel forfeited to the Crown.
There is a whole world of comment on pre-war
conditions in a short paragraph which appeared
in the commercial columns of the English news-

papers on 17th May, 1916, announcing that the


Board of Trade had made an order " determining
the contracts made in 1910 and 1912 for delivery
of the Broken Hill Company's output of lead and
zinc concentrates over long periods to German
" "
smelters." These German smelters were re-
presented in New South Wales by naturalised
Germans who held seats on the directorates of various
metal companies and by agents in London who
bore good English names. The Australian Federal
Government passed legislation which removed these
naturalised Germans from every position as directors
or shareholders in the Associated Smelters' Pro-

prietary and other companies in Australia, and


annulled every German contract which they had
made. To-day the control of this enormous
tonnage of lead and silver is completely in British
channels. In January 1916 the Federal Prime
Minister, Mr..W. M. Hughes, made the following
"
statement regarding this industry The outlook
:

in the beginning of 1915 was gloomy in the extreme.


.... The closing of the year looks upon quite
198 PEACEFUL PENETRATION
a different picture. The metal industry is flourish-

ing, its prospects for the future are bright, and it has
not only held its own during the year, but materially
improved its position. ... As we have begun, so
we shall go on, profoundly convinced that victory
on the land or on the sea will be but an empty
honour if it leaves Germany free to resume that
systematic enslavement of the commercial and
industrial world which by a thousand subtle and
devious devices she had achieved."
I have already dealt (Chapter V, Section 3) with
German influence at elections in Australia. After
theWide Bay and other by-elections it was found
necessary in New South Wales to pass a short Act
disfranchising naturalised Germans during the war,
and making it illegal for them, or any person con-
victed of an offence under the War Precaution Act,
to sit or vote on Municipal or Shire Councils. 1
Sir John Prescott Hewett, formerly Lieutenant-
Governor of the United Provinces of Agra and
Oudh, speaking to a representative of the Morning
Post (24th March, 1916) expressed astonishment that
naturalised Germans were allowed to remain at
"
large in India, especially in the Native States. As
for naturalisation, I would pay no heed to it, for
under the law of India it is a mere farce. I may tell

1
On 12th May, 1916, public bodies in Mosman, Lithgow, and
Echuca, demanded the internment of all males of German
origin, including those naturalised. The activity of these
"British subjects" was said to have materially hindered the
work of recruiting (Sydney Daily Telegraph, 13th May, 1916).
NATURALISATION 199

you in this connection that I know a case of a German


who got himself naturalised in one of the Native
States solely in order that he might apply for a
mining concession." It is transparently clear that
if Germans can become naturalised in this way
and operate in a country like India as British
subjects, tariffs and economic alliances will avail
"
us nothing in combating the German menace,"
as far as imperial questions are concerned.
Mr. Jules Claes in The German Mole gives some
interesting details of the activities of naturalised
Germans in Belgium, and the general working of the
" "
system. One of these German-Belgian citizens
held a post in the local Civic Guard, and this con-
ferred upon him the privilege of attending certain
functions and participating in certain excursions.
He was thus enabled to visit some of the Belgian
defence works, and his partner is now bearing arms
against the country which extended hospitality
1
and citizenship to them.
Ernest Tonne] at says that the maintenance of
Deutschtum means for a large number of Germans
"
in Brazil a strictly German allegiance," that many
of the large German traders are violent enemies of

everything Brazilian, though many of them are


naturalised Brazilians, and that there are among

Mr. Claes says that the German Benefit Society in Antwerp


1

was subventioned by the German Government. " The very aim


of the societies which group together the Germans in foreign
lands is not only to keep alive the German spirit but to bring
"
the naturalised within the German fold (p. 118).
200 PEACEFUL PENETRATION
"
these extreme nationalists who remain from head
to foot Germans of Germany." 1
In the Ruhleben concentration camp for British
civil prisoners I made the acquaintance of two
Russians. They were both naturalised British
subjects but lived in Germany and owned property
there. There was no possibility of mistaking on
which side their sympathies were in the war. What
was the British Empire to them compared with two
or three thousand marks' worth of land in Silesia ?

Surely no naturalised foreigner should be permitted


to retain the rights of a British subject if he becomes
domiciled in a foreign country.
During the early part of 1916 the English news-
papers reported numerous meetings of companies
or associations at which it was decided not to accept
renewals of subscriptions from persons of German
birth, whether naturalised or not. In England and
the Dominions the naturalised German has become
an object of much sharper suspicion than his com-
" "
patriot who remained Gustav Schulz and a simple
German. As recently as the 10th May, 1916, the
Home Secretary said " Only within the last few
:

weeks there has been discovered, in the very heart


ofLondon, a public -house occupied by a naturalised
German, which was the resort of other naturalised
Germans, where language was used of a treasonable
and anti-British character, and which might have
1
L'Expanaion allemande hors d'Europe (1908), pp. 123-4.
M. Tonnelat emphasises that the German schools in Brazil have
been centres and hothouses of German nationalism (p. 129).
NATURALISATION 201

become a most dangerous centre." But such men


in war-time can be interned and dealt with in various

ways. What can be done in peace-time with


naturalised aliens who use the privileges of their
new citizenship to undermine its sovereignty ?

Another widespread practice among Germans


isthat of changing their names. On 3rd May, 1916,
Sir John Fulton, the Recorder at the Old Bailey,

spoke strongly on the danger to the public of allow-


ing persons of German nationality to hide their real
"
identity under an English name. Germans were
allowed to change their names under a deed poll.
That was being done extensively all over the
country." No other country in the world would
permit even its own subjects to change their names
ad libitum, to say nothing of allowing persons of
come and go from place to
foreign nationality to
place registration of any kind. The
without
Australian Chambers of Commerce which met in
conference in Brisbane in May 1916 strongly
recommended amendment of the naturalisation
laws, and compulsory registration of aliens through-
out the Empire.
CHAPTER VII

THE OUTLOOK
"Colonisation, commerce, Industrie, instruction, politique,
"
tout aboutit dans 1'esprit de 1'Allemagne a un conflit militaire
Andr< Barre, in 1907.

IN Glasgow on 16th May, 1916, Sir Archibald Denny,


addressing the Institute of Engineers and Ship-
builders, summarised the lessons of the war, in the
"
terse declaration that we must make ourselves
sure that we should not be again attacked unfairly,
or be found unprepared either in commercial or
military war." From an imperial point of view
the lesson of the war thus expressed is pregnant
with meaning to Great Britain, because the Power
which for years had threatened her and her Empire
knew no distinction between commercial and

military war. Nearly thirty years ago one who


knew Germany through and through said that
she had laid down certain lines for herself and that
"
she was following them to the letter. The
essential thing is That is the watchword
to arrive.
which Prussia has given and which all Germany
has taken up to arrive. This is not meant in the
restricted individual sense in which competitors
202
THE OUTLOOK 203

for personal gain understand it, but in the wide


national sense. This collective being called Ger-
many must resolutely plant its flag on every
territory, have vast colonies for its surplus popula-
tion, a great navy and merchant marine, and the
predominant position in the world of commerce
and industry." 1 Those who talked of concessions
to Germany, of her legitimate desire to expand,
of allowing her to form a closed colony at the

expense of Brazil or some other weaker Power,


knew nothing of the real Germany and her history.
Peace for Germany means a period of recuperation
for strengthening the machine.
How can we best consolidate our interests to
combat a system which now covertly works to
undermine our commercial structure in every part
of the world, now openly proclaims that its goal is

universal dominion ? The few suggestions with


which I conclude are the outcome of seven years'
study of Germanism at work in Germany.
(1) In tracing the development of Germany's
colonial ambition since the foundation of the Empire
I showed the vast difference between the natural

growth of our colonial empire and Germany's


conscious reaching out for Weltherrschaft, world-
sway. Germany stands for State efficiency and
" "
organisation, and by Germany here I mean the
whole people and not merely the ruling minority.
It is the national spirit animating this organisation
1
Paul Melon, UAllemagne chez elle et au dehors (1888), p. 105.
204 PEACEFUL PENETRATION
that has enabled Germany to defy the rest of Europe
and challenge the whole world to submit to her
superior Kultur. Without that spirit Empire
Bureaus and Societies for Imperial Commercial
Development are high-sounding phrases and nothing
more.
German unity of purpose may be expressed in this
wise. Germany was forging ahead by leaps and
bounds commercially. She pleaded, expressly, that
this form of expansion was not enough, that the
German State must expand, and that Kultur in all
its higher manifestations was bound up with this

State. The German people as a whole concurred.


German national solidarity is due to the steady
and insistent drilling into the German youth of
certain ideals of citizenship, to the close co-operation
between large business organisations and the political
authorities, to the particular atmosphere in which
German statesmen and officials have been trained.
All this has resulted in creating an industrial army,
in which officers and generals are scientific, have been

taught to look to certain ends, and know exactly


what they want, while the utmost of which each
unit is capable is extracted from the rank and file.
This has been the essential difference between
Germany's commercial policy and that of other
countries. It has been part of an aggressive State
machine operating from a powerful centre and
ramifying abroad through a thousand subsidiary
channels. We must be on our guard against
THE OUTLOOK 205
"
phrases and catchwords. Organisation of busi-
"
ness has for many months been on everyone's lips.
What does
it mean ? For Germany it meant
simply an attitude to science and industry that was
national.
Mr. F. W. Wile says of Herr Ballin, who had done
more than any other man to build up Germany's
"
merchant shipping, He is one of the real Makers
of Modern Germany," * But Ballin is one of the
general staff of scientific leadership in Germany's com-
mercial and industrial army. Where are the English
Ballins and Thyssens ? We hear almost daily in
England at the present moment that business men
have been inadequately represented on the national
councils. Whose fault is it ? The conception of
the State and its function has been entirely different
hi the two countries. We often declared that we
* ' ''
stand for progressive democracy. This is another
phrase. The Sydney Bulletin said recently that
when Asquith and Balfour made speeches they used
a tongue which was a mixture of the fag-ends of
many languages co-related on the basis of a foreign
grammar, but very far removed from the speech
of Bill Smith. The Sydney journal went on to
"
define English mostly a brag of
democracy as
freedom mixed with a devotion to old forms." We
cannot dissociate English democracy any more than
German State-organisation from the general mental
life of the nation. Organisation and laissez faire
1
Men Around the Kaiser, p. 11.
206 PEACEFUL PENETRATION
go together, and the former alone is not adequate
ill

to national ends. Without some measure of unity


of purpose organised force will be misapplied.
" "
What dependence upon Germany and control
of our industrymeant I have tried to show. They
can only be eliminated from our economic life by
tightening, where possible, the trade ties between
the various parts of the Empire, by making technical
science the concern of the nation, by increased State
attention to commercial interests, by organising
our consular and similar services into adjuncts of
Empire.
(2) Certain conditions obtaining amongst our-
selves helped the German machine to realise its
ideal of efficiency. Speaking in Manchester on
26th May, 1916, W. M. Hughes said that two years
ago Macaulay's New Zealander standing on London
Bridge and gazing upon the ruins of the mighty
world-metropolis would not have been a more
wildly improbable event than the visit of an
Australian come to urge the abandonment of
Britain's economic policy in the very citadel of that

policy. When I last heard Mr. Hughes it was many


years ago, in the Lang Division of the West Sydney
electorate he made as eloquent a defence of free
trade and denunciationof Protection as any
follower of Richard Cobden could have wished to
hear. And
at the time I supported him.
Since then I have spent eleven years in Europe,
seven of them in Germany, and I have become
THE OUTLOOK 207

convinced that our ideals must be adjusted to


practical conditions^ and that these conditions will
not wait upon our theories. I saw at work a system
of State surveillance over industry, of subsidies
and bounties, and organised " control," which made
fair competition impossible under free trade. I saw
what dumping really meant, and mere wealth
accumulation as distinguished from the healthy
life of economic production. In the steel trade, in
smelting, in the electrical trade, optical and scientific
instruments, dyes, and other lines of primary
national importance it became clear to me that we
were at the mercy of Germany in a very sinister
sense. Though this was largely very largely
due to our neglect of science, Germany's State
"
supervision, her subsidies, her export of men,"
made our free trade a hollow sham trade for us,

manipulated by Germany to make us, at the best,


a nation of dependent middlemen, and at the worst
to destroy us politically. In the Manchester speech
to which I have just referred Mr. Hughes stated the
whole position as concisely as it would be possible
"
to do :We were fast drifting to a state when we
should have been in all but name the economic
Germany." I saw how combinations were
slaves of
formed in Germany, fixing prices for the home
market, and pooling their losses for the foreign
market until they had strangled a rival competitor.
This was the practice of the aniline dye makers, of
the iron-masters of Diisseldorf, and the General
208 PEACEFUL PENETRATION
Company. I also saw that we imported
Electrical
from Germany mainly manufactured goods dyes,
electrical plant, optical glass, scientific instruments
and that if we had been making them ourselves
we should have had both men and factories to
strengthen us in resisting Germany's armed menace.
While the British Empire had become dependent
upon Germany for an adequate supply of products
of national import such as oleum, spelter, sulphuric
and nitric acid, what did the Empire export to
Germany in ? Mainly metal ores, coal,
return
wool and cotton yarns.
On 10th January, 1916, Mr. Runciman, President
of the Board of Trade, said in the House of Commons
"
that there should be no essential article, either for
the arts of peace or the arts of war, upon which we
cannot within the Empire lay our hands." Now
in 1913 Great Britain bought of Germany fifty-two
million pounds' worth of manufactured goods,
Germany bought of Great Britain only twenty-seven
million pounds' worth of manufactured goods. In
the process of manufacture Germany was doing
"
much more than up the machine," she was
build

training her population in the use of it. The aniline


dye and the high explosive industries are closely
related. A very large proportion of German
factorieswere so constructed that they could be
converted almost immediately into munition works.
merely a question of supplying work for the
It is not

people. A highly specialised type


of labour is
THE OUTLOOK 209

needed in certain industries, and Mr. Runciman's


" "
essential articles cannot be produced without
this specialised labour. That is the answer to those
who think that even if Germany became the greatest
manufacturing nation we could look on with
indifference provided we were merely the richest
nation. In England the Government was obliged
to commandeer nearly allthe optical instruments
in the country. What a comment on Britain's
position in the world of optical science ! The
production of long-distance glasses, microscopes,
photographic lenses, is a question of possessing
special plant and special skill, and the industrial
training necessary to produce them is as essential
to the nation as the possession of the instruments.
(3) The main object of this book is to show how
German commerce and the Prussian State-idea are
inter-related, how they threaten other nations, and
to suggest remedies.
This inter-relation has been particularly notice-
able inGerman methods of building up a mercantile
marine. Goods for export in German bottoms were
carried over the State railways at reduced rates,
and shipping companies received enormous State
subventions. Transport facilities in every direction
have been among the outstanding features of Ger-
1
many's economic expansion. The Hamburg-
American Line and the North German Lloyd have
1
Mr. B. H. Morgan, in The Trade and Industry of Australasia
(1908), pp. 54-5, 186, 205, shows how materially the lower rates
on German vessels have assisted German industry, the freights in
many classes of goods being 40 to 50 per cent, lower than the British.
210 PEACEFUL PENETRATION
been supported by their Government in a way that-
made them really a second German navy. Ever
since the Kaiser declared, in the early part of 1897,
"
that it was one of his cherished desires to see
Germany's navy take rank with the navies of the
first sea-powers," and that the Trident must be

in Germany's fist, the Government has spared


neither energy nor money to establish German lines
of shipping and use them for planting German trade
in every quarter of the world. In the five years
1894-9 the German merchant marine increased
21 '8 per cent., the British 8'85 per cent. Since then
the intervening years saw German shipping more
than hold its own in every sea and every port. The
time when the liner Furst- Bismarck, returning from
America, having outdistanced our own greyhounds
of the Atlantic, entered Queenstown with a flaming

sign at the mast-head, Made in Germany, is still


fresh in many minds. In 1901 Edouard Lockroy
"
wrote : There is a whole German fleet in Asiatic
waters which Europe never sees. Gradually it is
getting possession of the commerce of the Far East."
1

The North German Lloyd almost monopolised the


trade of British North Borneo. As far back as
1904 the total German steamship tonnage entering
Bangkok was 323,000, the total British only 60,000,
and in 1913 German shipping
at this port still
headed the list, though large part of the carrying
a
trade was between Bangkok and the British pos-
sessions, Singapore and Hongkong.
1
La Marine allemande, p. 226.
THE OUTLOOK 211

Our mercantile marine and its energies will be


our most material factor in re-establishing trade
after war, and in sinking merchantmen at sight

Germany has had that fact in mind. We could well


insist upon the restoration in kind of ton for ton,
as far as Germany's shipping resources will permit,
in our conditions of peace. This whole subject
of the post-war shipping position has been receiving
attention in the Tageblatt for over twelve months
and more recently in the Tdgliche Rundschau. In
the last week of May 1916 the Reichstag Commission
appointed to consider this matter submitted its
report and recommended that all German shipping
"
companies without exception should be aided to
construct new vessels by substantial sums to be
placed at their disposal."
Throughout Germany the demand has been in-
sistent for an extension of the shipping industry
and interests after the war, and we cannot afford
to neglect German preparations. In precisely what
form we must meet them experts will decide.
Doubtless we must be on our guard against injuring
ourselves in order to injure the enemy, but every
proposal, without exception, to put an end to
German penetration and undermining has been
dismissed with this argument by a certain school
of politicians in England.
It has been widely suggested that all goods
carried in foreign bottoms should be regarded as
foreign and liable to customs duties when we
have customs duties. All countries impose certain
212 PEACEFUL PENETRATION
restrictions and forms of protection in regard to their
own coastal trade. Throughout the British Empire
"
Germany has been treated on the most favoured
"
nation basis in regard to the use of British ports
and coaling stations, and her subsidies, State
assistance, and differential railway rates for goods
for export, had aimed at ousting British shipping.
At a meeting of the Woermann Line in May 1916,
Herr Ballin declared that the Reichstag would
afford assistance to restore a large German mer-
cantile marine. Referring to this statement Sir
Owen Philipps, on 8th June, replied that our own
Government would be obliged to render more and
more assistance to British commerce. " While we
can successfully hold our own against foreign traders,
given equality of terms, we cannot maintain our
position unaided against the resources of a foreign
Government." The Committee of the London
Chamber of Commerce in January 1916 suggested
that the Allied Governments should be asked to
impose special duties on shipping of enemy countries
using the ports of the Allied countries, with pre-
ferential treatment for five years for British Empire

shipping. The Journal of Commerce, 10th June,


1916, quotes a very significant statement made by a
representative of an important German shipping
" " "
company : She
(Germany) have the ships,
will
and as I think that much of this talk about the
boycott of German trade is largely war hysteria,
she will not lack the opportunities to use them."
Somewhat similar statements have been frequent
THE OUTLOOK 213

of late in the German Press. The future of our


mercantile shipping is certainly receiving serious
consideration in Germany.
(4) Some English free traders have recently
denied that there are such things as " key " in-
dustries. The Germans entertain no doubt on the
question. In March 1916 the German Socialist
organ, Vorwdrts, discussing post-bellum conditions
and possibilities, said that despite all the agitation
going on in England, and all the clamour about
capturing German trade, England would find it

impossible to regain her commercial supremacy,


or even to embark on certain important industrial
enterprises at all without Germany's co-operation.
The Socialist
organ went on to say that for many
years Germany had been securing control of certain
industries and now held a position in regard to them
which made other nations dependent upon her.
Mr. Austen Chamberlain described these industries
"
as pivotal." The important thing isnot the word,
but the idea. These industries both enriched
" "
Germany economically, and her control of them
placed her at a tremendous advantage in marshalling
and applying the national forces for military purposes.
We may say, then, that the expression " capturing
German trade " has been a current phrase of late
with a vast number whose real aim is to build up
our own trade. The Sydney Morning Herald
(17th April, 1916), speaking of German "control"
of the Australian metal industry, said that by legisla-
tion and other methods the " keys " which Germany
214 PEACEFUL PENETRATION
"
had succeeded in acquiring had been made value-
"
less in German hands." But we have not yet
succeeded in either getting these keys for our own
use or in making others that will open the doors that
have been temporarily shut through the war."
When and how did Germany gain " control " of
" "
pivotal industries ? She captured them in a
time which the British people regarded as one of
profound peace, and by various ways and means.
The most important of these ways and means was
the perfection and organisation of her scientific
equipment. Metals, dyes, chemicals, optical glass
these entered into policy as much as into the
economic system, which is only another way of
saying that science entered into policy. If Germany
retains her supremacy in science and research, all
our efforts in other respects to loosen her hold will
still leave us in the position of dependents. Though
the control of the lead and silver of Broken Hill
and other Australian mines has passed completely
from German to British channels, England is still
seriously concerned about her supply of metallic
zinc for industrial purposes. were crude ores
Why
sent from every part of the world to Germany to
be treated? Neither "dumping" nor "peaceful
"
penetration will be found a magic word answering
that question. The plant and equipment of the
Hutte attached to the Technical High School,
Breslau, for testing ores and investigating conditions
for dealing with concentrates, has no equal anywhere
else in the world, and Germany has several other
THE OUTLOOK 215

test smelting-houses only just inferior to that at


Breslau. In 1901 and 1902 the general economic
Germany was felt less sensitively in metal-
crisis in

lurgy by reason of the industry's close connection


"
with the State. For thirty years German metal-
lurgy has profited extensively from the political
power of the German Empire, and more than any-
where else it has the pronounced character of a State
industry." That was the opinion expressed in 1902
by one who was well abreast of German science, pure
and applied. Yet he did not find that in the in-
dustries depending upon metallurgy Germans had
shown either the inventiveness or the initiative of
"
their English, French, and American rivals. What
appears to have assured its success is perseverance
and application, the vast bulk of work it has had to
turn out, the perfecting of its scientific methods, and
*
its collective organisation for purposes of sale."
In electrical science and its application to industry
Germany's progress has been restless in all directions.
This has given her a command of plant and power
against which industries with inferior equipment
and working on antiquated lines cannot compete
"
successfully. L'Allemagne est surtout riche en
2
outillage," is the summing up of M. Victor Cambon,
and that, which is the burden of his whole inspection
"
of Germany at work," contains the kernel of her
industrial progress.

1
Paul de Rousiers, Hambourg et VAllemagne contemporaine
(1902), pp. 103-8.
2
L'Allemagne au travail (1909), p. 249.
216 PEACEFUL PENETRATION
Both and for optical
for scientific instruments

glass we had for years looked to Germany. Mr.


J. H. Pease, President of the Board of Education,
said in the House of Commons on 13th May, 1915 :

"
We relied upon Germany hard porcelain tubes
for
used in pyrometers, which are required for measuring
high temperatures. On a supply of these pyro-
meters depends the manufacture of needles required
for the sewing of boots and providing the foot gear
of our troops." The part played by optical glass
and scientific instruments in naval and military
operations is surely known in July 1916 even to the
man in the street in London. But Germany did
not attain her supreme position in these branches of
industry in a day or a generation. Concentration
upon technical science will avail us little unless our
elementary and secondary schools are efficient, and
we have well equipped continuation schools, with
compulsory attendance, for our youth who have
already entered upon industrial pursuits. Efficiency
in science is made up two great factors, scientific
of
tools for manufacture and the highest human skill
in the use of them. Hitherto we have neither
used the most scientific processes nor made the most
of the average producer. In every reach of life

education, industry, commerce we must meet


science with science. We can learn at least this
from Germany that the skill of the artisan is the
foundation of the nation's industry, and that the
apprentice is the father of the artisan. But we
must never lose sight of the directive ability which
THE OUTLOOK 217

Germany applies to this skill. Heads of depart-


ments, managers of firms and directors of companies
have been trained in the Commercial or Technical
High Schools, which are really universities, and all
high Government officials have lived in the at-
mosphere of this training.
From correspondence and newspapers I gather
that there a very general feeling in Australia and
is

New Zealand that the existing preference to British


goods can be extended. In the year immediately
preceding the war, of all imports into New Zealand
Britain supplied 60 per cent., the rest of the Empire
22 J per cent. According to the Canterbury Times,
of Christchurch, New Zealand (1st March, 1916),
the balance in favour of Great Britain and her present
Allies can be made still more favourable. The
Blue-book issued in June 1916 by the Canadian
Department of Trade and Commerce points in the
same direction, and declares that much of the trade
hitherto carried on with Germany can be diverted
to British and French channels. With the con-
troversial side of the fiscal question in England
I am not here concerned. But no preferential
tariff would shut out from Germany articles which
other countries did not, or could not, produce.
There is, however, no natural obstacle to our pro-
ducing all those wares which depend upon a highly
developed technical science. We have the raw
material and we have the human material to fashion
it to the needs of the world. Germans adapt and
organise what the French and English create.
218 PEACEFUL PENETRATION
Henri Andrillon says that Lavoisier, Berthollet,
Chevreul, and Guy-Lussac made the science of
organic chemistry but Germany drew the profits
from it. Some time previously M. Maurice Schwob
warned those of his countrymen who were talking
"
of the bankruptcy of science " that it was in a very
sound and solvent condition in Germany. In 1902
Professor Haller, of the Sorbonne, said that in fifteen
years Germany had seen the number of her chemical
laboratories and
their output doubled, and that the
dividends distributed in that time had shown a
continuous increase. 1
Since then this rate of
progress has been sustained, and in some countries
Germany controlled the whole market in chemical
products. The French Premier, in welcoming the
delegates of the Allied Economic Conference to Paris
on 14th June, 1916, said that "ancient errors"
had allowed their enemy " to exercise an irreparable
tyranny over the productive forces of the world."
The greatest of these errors was the national neglect
of science.
With the development of science in every sphere
of life many tropical products have become of
supreme importance in our national economy.
Rubber, cotton, and certain fibres are now quite
as necessary as cocoa and coffee. If we retain the
German colonies we shall possess over three million

square miles of purely tropical territory, and it is


probable that a considerable part of this can be made
1
Revue gtnerale des Sciences, 30th November, 15th and 30th
December, 1902.
THE OUTLOOK 219

fit for white settlement. Irrigation and sanitary


science have already produced effects reaching far
beyond mere economic significance. Statistics
published as recently as April 1916 showed that
Queensland, largely a tropical State, had the highest
birth-rate and the lowest infantile death-rate in
Australia. The Institute of Tropical Medicine here
has rendered valuable service to settlers by in-

vestigating climatic and other conditions and their


bearing on health and general development, and
making recommendations accordingly.
(5) Count von Caprivi, speaking as Imperial
Chancellor in the Reichstag on 27th April, 1891,
"
said : The question of emigration lies very near
the heart of the Prussian arid other German Govern-
"
ments," and in December of the same year Re-
:

munerative work will be found if these commercial


come into full force.
treaties We shall find this
work through exportation ;
we must export ;

either we export goods or we export men." German


emigration, the export of men in Caprivi's sense, has
not for many years been on a scale vast enough to
alarm the Home Government, but the export of
men in another sense, as well as of goods, has in-
creased by leaps and bounds since 1891.
Representatives of German firms have their home
in the country to be exploited and move among the
" "
people. The export of men has been organised.
British firms send commercial travellers who are
only a few months among the people with whom
they wish to trade. When dealing with Italian
220 PEACEFUL PENETRATION
houses and foreign firms generally, British traders
for the most part submit estimates in the English
weights and measures, and English currency.
Other things being equal they must at once be at a
disadvantage compared with firms who use the
metric Jsy stem. Professor Luiggi, President of the
Italian Society of Civil Engineers, who has done so
much to promote Anglo -Italian trade, said in April
1916 that in order to improve commercial relations
between the two countries "it is necessary to
encourage the study of languages and foster uni-
formity of weights and measures. Very few
Italians study the English language, and still fewer

English people study Italian yet to start an active


;

business it is important and necessary for both


seller and buyer to understand each other."
In Germany the exporter is assisted in every
possible way both by the State and by private
organisations. M. Maurice Schwob gives an account
"
of the special export associations," whose sole
business is to organise facilities for the export of
German wares, providing catalogues, lists of prices
current, local requirements, all in the language
of the country concerned.

The salient features of German expansion, con-


sidered from the point of view of British interests,
have been First, our neglect of science and lack of
:

national organisation gave Germany fatal entry into


the vitals of our industrial economy second, ;
THE OUTLOOK 221

Germany's population has increased for over two


decades at about 800,000 a year, and her past
emigration has been lost to the flag because we have
seizedmost of the territory outside Europe fit for
white settlement and third, Germany's science
;

and economic expansion were part of her State-


machine, and were being applied to the political
undermining of other States.
In April 1916 Herr Sydow, Prussian Minister for
Commerce, said that Germany must have access to
"
the markets of the world, if she is to live." About
the same time Dr. Richter spoke in a similar strain
before the Budget Committee of the Reichstag.
What does Herr Sydow mean by the expression
" "
if she is to live ? Every aggressive step Ger-
many has taken, economically or politically, she has
declared to be an act of self-defence. We must also
realise clearly what Herr Sydow means by access
to the markets of the world. For us this must not
be allowed to mean

(a) The retardation of our own economic


development by Germany's systematic
dumping and State-fed competition,
(b) The " control " of our industries and the
regulation of output by naturalised Germans,
(c) The shameless counterfeit imitation of other
nations' marks and products,
" "
(d) An insidious cultural campaign in behalf
of political Deutschtum.
INDEX
AFRICA, German "colonisation" CAMBON, VICTOR, quoted, 19,
of, 131-6 216
Agents provocateurs, 22-4, 135 Canada and Deutschtum, 13, 14,
Alype, Pierre, quoted, 29, 84, 146 63-4
Andrillon, Henri, quoted, 80 Canterbury Times (N.Z.), quoted,
Auckland Weekly News, quoted, 62, 217
56, 57 Caprivi and German commerce,
Australia and Deutschtum, 150-1 15, 219
and World politics, 156-188 Carrillo, E. Gomez, on Deutsch-
federal movement in, 157, 176 tum in Spain, 87
racial and national homo- Chemical products in France,
geneity in, 170-181 German control of, 83
the new imperialism in, 181-8 China and Deutschtum, 110-
112
BAGHDAD RAILWAY, 165-6, 169 Claes, Jules, quoted, 195, 199
Banks, German, as agents of Clark, A. I., on the future of
penetration, 9, 89 Australia, 172-3
Barre, Andre, quoted, 202 on naturalisation laws in
Bazin, Rene, quoted, 91 Australia, 193
Bethmann-Hollweg on Germany's Colonisation, German, 118-137
of
" Commercial High Schools, Ger-
policy quiet development,"
15 man, 21, 217
Bigelow,Poultney, quoted, 60, 146 "Control" of products, meaning
Bismarck, 15-16, 130 of, 21, 213
and Colonies, 16, 124
Kriiger, 65 DAILY TELEGRAPH (Sydney),
South Africa, 64-5 quoted, 13, 57, 179
Stieber, 44-50 Drang nach Osten, meaning of,
Brazil and Deutschtum, 104-8, 164-9
190 Daudet, L6on, quoted, 47, 191
" "
Bridgeman Taylor "in Canada, Dumping," meaning of, 89-90,
64 207-8
Brooke, Rupert, 145 "
Bulletin (Sydney), quoted, 58, EAST, Pressing towards," 164-9
182, 205 Egypt, Germans promote dis-
Biilow on Kiao-Chow, 137 affection in, 73
Burma, Germans control wolfram Espionage, as expression of Ger-
ore in, 71 man national character, 33-5
Germans promote conspiracies "
Export of men," meaning of,
and disaffection in, 71-2 80-2, 219-220
222
INDEX 223

FABRI, ERNST, quoted, 41-2 KAISER, his appeal to Germans


Fabri, Friedrich, 128, 139, 174 abroad, 9
Farrell, John, quoted, 156-7 on Kiao-Chow, 137
Fiji, Germans in, 62 Kartells, their co-operation with
Foster, Sir George, quoted, 54 German government, 19
France, German penetration in, 79 Kiao-Chow, its place in the his-
Franzius, Albrecht, 60-1 tory of German colonisation,
Free trade and colonies, 186 136-7
and preferential tariffs, 217
W. M. Hughes on, 206 LEUTWEIN, GENERAL, former
Governor of S.W. Africa, 142
GERMAN-AMERICANS, 74-8 L4vy, Raphael-Georges, 46, 93
Gladstone, supports Germany List, Friedrich, quoted, 85
against Australia, 130
von der, 31
Goltz, MAHAN, ADMIRAL A. T., 166-7,
Gray, Ezio M. on German espion-
,
169
age in Italy, 48-9 Manchester Guardian on Australia
and Imperial Federation, 181
HARDINGE, LORD, on German
conspiracies in India, 70
Marvaud, Angel, on German
Hatzfeldt, Priuz, his activities in penetration in Spain, 87-8
Marx, Karl, personal appearance,
Egypt, 73 42 (note)
Hauser, Henri, on German
methods of economic expan- Melon, Paul, on the Germans in
sion, 16-17 Russia, 95-6
Sir John on German emigration, 119
Hewett, Prescott,
Mercantile Marine, Germany's,
quoted, 71, 198
as instrument of penetration,
Holland, Germanisation of, 100-
102 209-213
Metal Market, German control of,
Hongkong, Germans in, 72
21, 55, 214
Hiibner, Baron von, on the Ger-
mans in the British Mexico, Germanism in, 109-110
Empire, Monazite sand, German control
62, 152
of, 108
Hughes, Sir Sam, 63
Hughes, W. M., 14-15, 163-4, Moser, Justus, quoted, 119
197-8, 206
NATIVE races, Germany and,
IMITATION, Fraudulent, by Ger- 139-145
man manufacturers, 26-7, 82, 89 Naturalisation, 189-201
India, Germans promote disaffec- as an instrument for promoting
tion in, 67 Deutschtum and for under-
German missionaries in, 68 mining, 22, 39, 196
trade in, 71 New Guinea, German colonisa-
naturalised Germans in, 198-9 tion of, 125-8
recent resolutions of Chambers New Zealand, German element
of Commerce in, 69 in, 62-3
Inner, Georg, 168 German spies in, 56-7
Italy, German espionage in, 48-9 Nickel, German control of, in
naturalised Germans in, 191-2 New Caledonia, 84
penetration of, 89-93 Nicot, Lucien, quoted, 32, 36,
Islam, Germany and, 73 79
224 PEACEFUL PENETRATION
OPPENHEIM, MAX VON, his activ- Scientists as spies, 56-7
ities in
Egypt, 73 Secret Service, the German, 20,
Organisations to promote Ger- 35-6
manism abroad, 13, 27-8, 121 Shipping, German, and penetra-
tion, 209-213
PAPEN, VON, 25, 76-7 Sleuth-hounds, What are? 30-40,
Parkes, Sir Henry, 158-160, King of, 40-53
171-2 Sorel, Albert, quoted, 79
Payne, E. J., on "the vestibule South Africa, Germans in, 64-7
of the British Empire," 167 Spain and Deutschtum, 86-9
Peaceful Penetration, Definition Spelter, German control of, 55
of, 11 Spies, commercial agents as,
How carried on, 18-29 19-20
Press, control of, by German females as, 26-7
agents, 24-7, 76 , German embassies and, 32

Preziosi, Giovanni, quoted, 92 State, as instrument of peaceful


Priifer, Dr. Curt, scholar and penetration, 15-17, 203-4
archseologist, his activities in Stevenson, R. L., quoted, 144-5
Egypt, 73 Stieber, Carl, organiser of Ger-
uttkamer, Secretary of State, on
Puttkamer, man Secret Service, 40-53
spies and their services, 32 and Bismarck, 44-5, 50
Frederick William IV, 44
RAILWAYS, differential rates on authorities for his career, 50-1
German, 209
Rowland, Percy, quoted, 174 TONNELAT, ERNEST, quoted. 77,
Rumania and Deutschtum, 104 154
Rumpff, of the German Secret Tungsten, German control of, 21,
Service, 32 71
Russia and Deutschtum, 93-100 Turkey and Deutschtum, 112-117

SAMASSA, PAUL, on Portugal's UNITED STATES and Deutschtum,


African possessions, 148 74-8
Samoa, Germany and, 128-131,
144 WESTGAHTH, WILLIAM, quoted,
Schmoller, Gustav, quoted, 106 126, 184
Schools, German abroad, 14, 28, Wile, F. W., quoted, 105, 190,
58-9, 66, 200 205
Schwob, Maurice, quoted, 81,
89 ZAHN, PROFESSOR, on Germans
Science as factor in Germany's abroad and their duty to
commercial and industrial pro- Deutschtum, 149
gress, 209, 215, 218 Zanzibar, 134, 147

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